GBP/USD Elliott Wave Analysis
GBP/USD is currently trading with bearish bias. Earlier today, the pair gapped down and opened below a significant support level 1.4468, headed short and even broke below the next support level 1.4406.
We expect the just broken support level 1.4395 to act as a resistance to any upward rally, thus, as long as the level 1.4395 holds true as a strong resistance level, we expect an acceleration to the lower-side but should not close below 1.4304.
However, in case the price closes above 1.44061, then we expect a momentum to the upper side and may close above 1.4480.
This pair should be traded alongside EUR/GBP and GBP/JPY. These pairs have a strong positive correlation of up to +0.95 and will have a similar price action intraday.
Trade Recommendations:
As long as the pair trades below 1.44061, remain short with your target at 1.4304. A clear break above 1.44061 will mean looking for long positions with your target at 1.4480 and the next target at 1.4545.