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GBP/USD Elliott Wave
The GBP/USD pair was trading in an upward channel for last few days. During the Monday's European session we could observe the price testing 100EMA Resistance, therefore during the New York session the GBP/USD pair continued to trade in a bullish mood and price reached the 1.0591 level. Today during the Asian session we could observe the price at 1.5930 (5-day high). We can consider this move as wave B (coloured pink). Presently we can observe C wave of the bigger 2 wave (coloured blue). In accordance with our wave rules and taking into account that the wave C is as equal as wave A, we can define the potential targets with Fibonacci extensions (1.6061-1.5804-1.5930); the First Take Profit at 1.5771 (61.8% of wave A) and Second Take Profit at 1.5673 (100% of wave A). For Stop Loss we can use the resistance level at 1.5910. Also it is necessary to consider the data concerning the U.S. IBD/TIPP economic optimism, wholesale inventories m/m, FOMC member Lockhart Speech and EU Sentix Investor Confidence that can affect the rate of the pair.
Support and Resistance levels
(S3) 1.5802 (S2) 1.5832 (S1) 1.5850 (PP) 1.5880 (R1) 1.5910 (R2) 1.5928 (R3) 1.5958
Trading Forecast
Proceeding from Elliott Wave Rules, today the trend is expected to begin the downward movement. That is why Short positions at level 1.5870 with Stop Loss at 1.5910,Take Profit 1 at 1.5771 and Take Profit 2 at 1.5673 are recommended.
