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GBP/USD Elliott Wave
For the last few days the GBP/USD pair was trading in an upward movement, corrective B wave (coloured blue) of the bigger (2) wave (coloured green) was developing. Yesterday, during the Asian and European sessions we could observe strong ascending movement from 1.06070 toward the 1.6121 level and we can consider this move as the end of the B wave (coloured blue). Therefore, during the New York session this major pair did not manage to hold this level and the price started pushing lower reaching a new sessions low at 1.6097 level. At the moment the GBP/USD pair is trading around 1.6123 level and we are expecting to see the price lower for the next few days. In accordance with our wave rules and taking into account that the wave 2 should retrace 61.8% of the wave 1, we can define the potential targets with measuring wave 1 with take profit at 1.5942 (61.8% of wave 1). To reduce the risk, we can use resistance at 1.6130 level as stop loss.
Support and Resistance
(S3) 1.6026 (S2) 1.6047 (S1) 1.6080 (PP) 1.6101 (R1) 1.6134 (R2) 1.6155 (R3) 1.6188
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 1.6100 with stop loss 1.6130 and take profit at 1.5942 are recommended.
