GBPUSD Elliot Waves Analysis For 29 February 2016
29 February 2016, GBP/USD
GBP/USD is currently trading with a bearish bias. During the previous trading day, pound broke below the lowest low 1.387 and is pretty mush bearish on the daily chart. Although we expect a continuation of the downward trend, we are waiting for a minor pullbacks towards 1.3922 or even further to the upper resistive trend line to execute sell orders. A break above 1.3922 will call for further long positions but only up to the upper trend line, however, should the price turn bearish below 1.3922, then it would be wise to sell the pair with an ultimate target at 1.3486. Ideally, the pair is in a downtrend, and will likely trade short for the better parts of this week. Pound should be traded alongside other positively correlated pairs such as GBP/JPY, GBP/NZD and NZDCAD. These pairs have a strong positive correlation of up to +0.96 and are thus expected to have a similar price pattern. Only buy or sell pound if all the other positively correlated pairs are giving the same signal.
Remain long with your target at 1.3922. A break above 1.3922 will call for further long positions but only up to the upper trend line. Should the price turn bearish below 1.3922, then it would be wise to sell the pair with an ultimate target at 1.3486.
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