GBPUSD Elliot Waves Analysis For 7 January 2016 | 07 January 2016
07 January 2016, GBP/USD
Wave Analysis:
GBP/USD is currently trading with a very slight bullish bias. During the previous trading day. Pound traded short and ended up finding a support along the lower green trend line forming the bottom of the falling wedge. As along as this supportive trend line holds true as a strong support, we will be looking for long positions above it, in case of a clear breakout below it, we will be looking for short positions. Traders trading this pair should observe other pairs such as GBP/JPY, AUD/USD, and CAD/JPY. These pairs have a strong positive correlation of up to +0.86 and are thus expected to have a similar price action. Only buy or sell Cable if all the other positively correlated pair are giving the same signal.
Trade Recommendations:
As along as this supportive trend line holds true as a strong support remain long with targets at 1.4695 and the upper resistive red trend line.
The author's opinion reflects their personal view and is not an investment recommendation. The company is not responsible for any trading results based on the provided analytical data.
