GBP/USD Weekly Wave Analysis

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GBP/USD Elliott Wave
The GBP/USD pair was trading in an upward move last week developing waves 1 and 2 (coloured green). During the Asian and the early European sessions we could observe descending movement toward the 1.5640 level where this major pair found support and price started pushing higher. Therefore, during the New York session we could observe a strong bullish mood in this pair and price reached above 1.5720 level. Today the GBP/USD pair is trading in a sideways move and we are expecting to see price above 1.5800 level. In accordance with our wave rules and taking into account that the wave 3 retraces 161.8% of the wave 1, we can define the potential targets with Fibonacci Extensions (1.5265-1.5777-1.5483 with Take Profit 1 at 1.5993 (100% of wave 1) and Take Profit 2 at 1.6408 (161.8% of wave 1). Invalidation point at 1.5484 can be used as a Stop Loss point. Also it is necessary to monitor the U.S Factory Orders m/m and Total Vehicle Sales data that can change the rate of the pair.
Support and Resistance Levels
(S3) 1.5605 (S2) 1.5636 (S1) 1.5654 (PP) 1.5685 (R1) 1.5716 (R2) 1.5734 (R3) 1.5765
Trading Forecast
Proceeding from Elliott Wave Rules this week, the trend is expected to begin the upward movement. That is why long positions at level 1.5777 with Stop Loss at 1.5484 Take Profit 1 at 1.5993 and Take Profit 2 at 1.6408 are recommended.