Market Overview The GBP/USD pair remained within the short-term bullish channel for the last 4 weeks. Yesterday we could observe the pair’s breakdown to 50EMA support around 1.5800 level where this major pair finished trading day. Today we could observe the bullish mood and the upward movement to the 1.5840 level in the early European Session. Price is currently testing resistance line around 1.5860 level. In case level 1.5880 is passed through, the point 1.6030 will be considered the nearest resistance level.
Support and Resistance levels (S3) 1.5756 (S2) 1.5780 (S1) 1.5795 (PP) 1.5819 (R1) 1.5843 (R2) 1.5858 (R3) 1.5882
GBP/USD Elliott Wave Analysis GBP/USD pair finished the wave (2) of the bigger 3 wave at the 1.5785 level starting wave (3). According to our wave rules and taking into consideration that the wave (3) is expected to finish 100% or 161.8% of the wave (1), we can define possible target levels with Fibonacci Extensions (1.5706-1.5882-1.5785) with take profit 1 (100%) at 1.5960 level, take profit 2(161.8%) at 1.6068 level and stop loss end of the wave 2 located near the 1.5780 level.
Trading Forecast Concerning the Elliott Wave Rules today the trend is expected to go upwards. That is why it is recommended to open the LONG positions at level 1.5880 with Stop Loss at level 1.5780, Take Profit at level 1.5960 and Take Profit 2 at 1.6068.
