GBPUSD Elliot Waves Analysis For 10 December 2015
10 December 2015, GBP/USD
GBP/USD currently trading with a bullish bias. Wave (4) extended long to 1.5194 and is currently trading just above the red resistant trend line forming part of the falling wedge. We are waiting for the price to close just below this red trend line for us to continue trading short with wave (5). As long as the pair trades above this red trend line, we continue long. This pair should be traded alongside other pairs such as USD/CHF, HKD/JPY, and CAD/JPY. These pairs have a strong positive correlation of up to +0.78 and are thus expected to have a similar price action. Thus, only buy or sell USD/JPY if all the other positively correlated pairs are giving the same signal.
As long as the pair trades above the red trend line, continue long. Any clear movements below the red trend line will call for further short position with target at 1.5029 and the green support trend line.
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