GBPUSD Elliot Waves Analysis For 12 February 2016
12 February 2016, GBP/USD
GBP/USD is currently trading with alight bearish bias. During the previous trading day, instead of heading long as previous forecasted, pound traded short and is currently on an upward pullback. We expect the current upward movement to be the continuation of wave(5) with our target above 1.4659. Thus, we will be keen to look for long positions above 1.452 with our targets above 1.4659. Only a close below 1.4358 would mean we are headed short. This pair should be traded alongside other positively correlated pairs such as GBP/JPY, GBP/CHF, NZD/JPY, and SGD/HKD. These pairs have a strong positive correlation of up to +0.9 and are thus expected to have a similar price direction. Only buy or sell pound if all the other positively correlated pairs are giving the same signal.
Buy above 1.4527 with your targets at 1.4659 and 1.4814. Only sell below 1.4358 with your target at 1.423
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