GBPUSD Elliot Waves Analysis For 23 December 2015

23 December 2015, GBP/USD

GBPUSD Elliot Waves Analysis For 23 December 2015
Wave Analysis:
GBP/USD is currently trading with a slight bearish bias. The pair broke below the green supportive trend line, and is currently making pullback movements towards it. Following the downward movements witnessed during the previous trading day, we are reluctant to go long. Instead, we are waiting for price to turn bearish upon retracing to the green trend line for us to continue short with our target at 1.4737. Any clear close above the green trend line will mean looking for long positions with targets above 1.4921. This pair should be traded along side other positively correlated pairs such as GBP/HKD, GBP/CHF, and AUD/CHF. These pairs have a strong positive correlation of up to +0.86 and are thus expected to have a similar price action. Only buy or sell Pound if all the other positively correlated pairs are giving the same signal.

Trade Recommendation.

Wait for price to retrace back to the green trend line, then sell with a target at 1.4737.

Graham Osano
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