GBP/USD Elliott Wave
For the last few days the GBP/USD pair was trading in a sideways move, corrective 4 wave (coloured blue) of the bigger (1) wave (coloured green) was developing. Yesterday during the European session we could observe descending movement from 1.6048 toward the 1.6013 level and we can consider this move as the end of the corrective (A) wave (coloured pink). Therefore, during the New York session the GBP/USD pair did not manage to hold this level and the price started pushing higher reaching a new daily high at 1.6053 level. Wу can consider this move as the end of the (B) wave (coloured pink). At the moment this currency pair is trading around 1.6012 level and we are expecting to see the price higher today when development of the final 5 wave (coloured blue) starts. In accordance with our wave rules and taking into account that the wave 5 should retrace 100% of the wave 1, we can define the potential targets with measuring wave 1 with take profit at 1.6090 (100% of wave 1). To reduce the risk, we can use invalidation at 1.5936 level as stop loss.
Support and Resistance
(S3) 1.5982 (S2) 1.6000 (S1) 1.6011 (PP) 1.6029 (R1) 1.6047 (R2) 1.6058 (R3) 1.6076
Trading Forecast
Proceeding from Elliott Wave rules today, the price is expected to begin the upward movement. That is why long positions at level 1.5987 with stop loss 1.5936 and take profit at 1.6090 are recommended.