GBPUSD Elliot Waves Analysis For 5 February 2016

05 February 2016, GBP/USD

GBPUSD Elliot Waves Analysis For 5 February 2016
Wave Analysis:
GBP/USD is currently trading with a slight bullish bias. During the previous trading day, Pound traded long and even hit our daily resistant 1.4659 but could not close above it. We are waiting for minor pullbacks towards 1.4525 for us to continue long, with our ultimate target at 1.4814. Only a close below 1.4525 would challenge the anticipated upward trend. A close below the support 1.4525 would mean we are headed short but with our target at 1.4419. This pair should be traded alongside other positive correlated pairs such as AUD/CHF, EUR/CHF, and AUD/JPY. These pairs have a strong positive correlation of up to +0.91 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:

Remain short but only up to 1.4525, then buy from with your target at 1.4814

Graham Osano
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