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GBPUSD Elliot Waves Analysis For 26 January 2016

26 January 2016, GBP/USD

GBPUSD Elliot Waves Analysis For 26 January 2016
Wave Analysis:
GBP/USD is currently trading with a slight bearish bias. During the previous trading day, pound traded long and ended up finding a resistant at1.1433, we expect 1.4362 to have marked the end of wave (a), and that the current downward movement is the unfolding of wave (b) towards 1.4097. Although we anticipate further downward movements, we will only go short on a clear break below 1.4206. A clear bounce from 1.4237 would mean we are headed long with our target at 1.4419. This pair should be traded alongside other positively correlated pairs such as NZD/JPY, NZD/USD, NZD/CHF, GBP/JPY and GBP/CHF. These pairs have a strong positive correlation of up to +0.93 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 1.4097

Graham Osano
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