GBPUSD Elliot Waves Analysis For 27 April 2016 | 27 April 2016

Wave Analysis:

GBP/USD is currently trading with a bullish bias. Yesterday, the pair traded long and even tested our resistance level 1.46609. We are waiting for a corrective rally to the lower side for wave [4] to end along the ascending trend line. Thus, during this day, we expect an acceleration to the lower side, and a rebound from the red supportive trend line. We will only buy this pair upon a clear rebound from this trend line or a breakout above 1.4660. This pair should be traded alongside, EUR/USD, GBP/CHF, AUD/JPY, AUD/USD, and GBP/JPY. These pairs have a strong positive correlation of up to +0.89 and will likely have a similar price action during this intraday. Only buy or sell the cable if the other pairs are giving the same signal.

Trade Recommendations:

Remain short but only up to 1.4519. A clear breakout below the ascending trend line will push the push the price further to the lower side. Buy positions are only recommended upon a a clear breakout above 1.46609 or upon a clear rebound from the lower supportive trend line.