Elliott Wave Analysis EURUSD and GBPUSD May 19 2016

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EURUSD

EURUSD is trading nicely lower for the last few weeks and it has now at the shape of an impulsive decline underway if we consider the sharp fall yesterday to 1.1200 area which was our minimum downside objective. But this decline looks strong so we expect more weakness within the red wave 3) headed to 1.1000 area, while the price trades beneath the upper channel resistance line and 1.1348 swing high.

EURUSD, 4H

EURUSD 4 (5)

GBPUSD

GBPUSD is trading to the upside in the last 48 hours from 1.4330 so it appears that the corrective wave two is still underway. An updated count shows the idea of a flat in progress after a recent small break beneath red wave 1), which is usually the case in wave B of a flat pattern. That said, the price is probably in wave C that can be looking for resistance then around 1.4550-1.4600 area this week. We remain bearish on the cable as long as market trades beneath 1.4769 high, where the pair might accomplished a big contra-trend move visible on higher time frames.

GBPUSD, 4H

GBPUSD 4 (2)

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About Author

Grega Horvat
Grega is based in Slovenia and has been involved in markets since 2003. He is the owner of www.ew-forecast.com, but before that he was working for Capital Forex Group and TheLFB.com. His feature articles have been published on FXstreet.com, Thestreet.com, Action forex, Forex TV, Istockanalyst, ForexFactory, Fxtraders.eu, Insidefutures.com, etc. He recently won the award on FXStreet.com for Best Forex Analysis in 2016. At www.ew-forecast.com he helps clients and educates them about the Elliott wave principle and how to label and track unfolding patterns in real time. His approach to the markets is mainly technical. He uses a lot of different methods when analyzing the markets such as candlestick patterns, MA, technical indicators etc. His specialty, however, is Elliott Wave Theory which could be very helpful especially if you know how to use it in combination with other tools/indicators.
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