GBP/USD Elliott Wave  
Since the beginning of 2013, the GBP/USD pair was trading downwards, impulsive wave 1 (coloured purple) of the bigger (5) wave (coloured blue) was developing. When we look at 1-week chart of this major pair, we can see that (4) wave was triangle and that we are currently at the end of the impulsive sub-wave 1 of (5) wave. For the short-mid term movement we can expect small retracements to the 1.5500 area (possible end of the wave 2), and for the longer term period we are expecting to see cable below 1.2500 level. In accordance with our wave rules and taking into account that the wave 5 should retrace 61.8% of the waves 3 , we can define the potential targets measuring wave 3  with take profit at 1.2120 (61.8% of wave 3). To reduce the risk, we can use invalidation at 1.6380 level (end of 4 wave) as stop  loss.

Support and Resistance 
(S3) 1.4654 (S2) 1.4893 (S1) 1.5031 (PP) 1.5270 (R1) 1.5408 (R2) 1.5647 (R3) 1.5785

Trading Forecast 
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at the level 1.5100 with stop loss at 1.6380 and take profit at 1.2120 are recommended.