Elliott Wave Analysis GBPUSD and USDCAD May 12 2016

GBPUSD

GBPUSD has turned sharply lower last week from 1.4769 where we see signs of a top in place. The reason is a strong, impulsive decline and a broken channel line connected from 1.4090 that puts a bearish trend in play. So ideally market accomplished a big corrective wave IV that was underway since the end of February. This however is still an early call, but we will definitely look for three waves down, to 1.4344.
GBPUSD, 4H

USDCAD

USDCAD is turning up strongly this month from 1.2460 with more than a 400pips bounce so far which is not a surprise at all. Keep in mind that such sharp reactions are very common after a completed ending diagonal. Well, usually when this pattern is finished the price will tend to return back to the starting point of the pattern which, in our case, is near 1.3180. However, this is far away so we expect more gains after any pullback, especially if we also consider that the big five wave drop in black wave A is now accomplished shown on the daily chart. In the short-term, price may go down into wave B-circled on 4h which may look for a support at 1.2750-1.2780 area.

USDCAD, 4H

Gregor Horvat

Grega Horvat Grega is based in Slovenia and has been involved in markets since 2003. He is the owner of Ew-Forecast, 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 Ew-forecast 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. EW-Forecast To be involved in the market effectively, you need the right guidance and resources, and our team can help you to achieve that. Our team is providing advanced informations about Elliott Wave theory in real time. The Elliott Wave Principle gives you a method for identifying the behavior of the markets and at what points the market is most likely to turn. We help new traders who are interested in Elliott Wave theory to understand it correctly. We are doing our best to explain our views as simple as possible with educational goal, because knowledge itself is power!

View all posts by Gregor Horvat