GBPUSD Elliot Waves Analysis For 20 January 2016

20 January 2016, GBP/USD

GBPUSD Elliot Waves Analysis For 20 January 2016
Wave Analysis:
GBP/USD is currently trading with a bearish bias. During the previous trading day, pound traded short as previously forecasted and is still pretty much bearish. Following the previous trading day's down thrush, we are very reluctant to go go long, instead, we will hold on to short positions with an ultimate target at 1.3485. This pair should be traded alongside other positively correlated pair such as GBP/JPY, GBP/CHF, CAD/JPY, AUD/CHF and AUD/JPY. These pairs have a strong positive correlation of up to +0.94, and are thus expected to have a similar price action. Only buy or sell Cable if all the other positively correlated pairs are giving the same signal.

Trade Recommendation:

Remain short with an ultimate target at 1.3485.

Graham Osano
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