GBPUSD Elliot Waves Analysis For 18 February 2016
18 February 2016, GBP/USD
GBP/USD has entered into a minor consolidation not going above 1.4312 and below 1.4286. In the meantime, we choose to sit on the sidelines and only buy upon a clear breakout above 1.4312. A clear breakout above the pivot level 1.4358 will call for further long positions with our ultimate target at 1.4456. Any clear breakout below 1.4286 will mean we are headed short with our target at the support level 1.4286. A break below 1.4286 will mean we are headed further short, thus, short positions will be ideal below 1.4286. This pair should be traded alongside other positively correlated pair such as GBP/HKD. This pair is strongly positively correlated to pound and is thus expected to have a similar chart pattern with pound. Only buy or sell pound if all the other positively correlated pairs are giving the same signal.
Only buy above 1.4312 with your ultimate targets at 1.4358 and 1.4456. Sell below 1.4286 with your targets at 1.4230 and 1.4097.
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