GBP/USD Elliott Wave
For the last few days the GBP/USD pair was trading upwards, corrective wave (A) (coloured red) of the bigger wave 2 (coloured purple) was developing. During the Friday's Asian and European sessions we could observe strong ascending movement from 1.5715 towards the 1.5844 level and we can consider this movement as the end of the impulsive wave (5) (coloured green) of the bigger (A) wave (coloured red). Therefore, during the New York session this major pair did not manage to hold this level and the price started pushing lower reaching 1.5784 level. At the moment the GBP/USD pair is trading around 1.5760 level and we expect to see one more bullish movement in this pair when the development of the (C) wave (coloured red) starts. In accordance with our wave rules and taking into account that wave C should retrace 100% of the wave A, we can define the potential targets with measuring wave A with take profit at 1.5951 (100% of wave A). To reduce the risk, we can use invalidation at 1.5632 level as stop loss.
Support and Resistance
(S3) 1.5579 (S2) 1.5641 (S1) 1.5719 (PP) 1.5781 (R1) 1.5859 (R2) 1.5921 (R3) 1.5999
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 1.5800 with stop loss 1.5632 and take profit at 1.5951 are recommended.