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GBPUSD Elliot Waves Analysis For 16 February 2016

16 February 2016, GBP/USD

GBPUSD Elliot Waves Analysis For 16 February 2016
Wave Analysis:
GBP/USD is currently trading with a bearish bias. Almost a week ago, the pair tested 1.448 which is now a pivot level on the hourly chart. Currently, the pair is trading just above a significant support level 1.4358, and may likely go below it. Equally important is the fact that the intraday relative strength index is trading below its neutrality level of 50. Meaning, pound market will likely be headed short with an ultimate target at 1.4097. Only a close above 1.452 will call for long positions with our target at 1.4642. This pair should be traded alongside other positively correlated pairs such as NZD/USD, these pair have a strong positive correlation to pound of +0.94 and are thus expected to have a similar chart pattern with pound. Only buy or sell pound if the other pair is giving the same signal.

Trade Recommendation:

Go short below 1.439 with your target at 1.4097. Only buy above 1.4528 with your target at 1.4642.

Graham Osano
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