GBPUSD Elliot Waves Analysis For 22 February 2016 | 22 February 2016

Wave Analysis:

GBP/USD is currently trading with a bullish bias. During the previous trading week, pound rebounded from the support level 1.4277 and is pretty much bullish. Following this bounce, we are very reluctant to execute short positions, instead, we will hold onto buy orders with our targets at 1.4455 and 1.45446. Sell positions will only be ideal incase the price turns bearish just below 1.42772, or along one of the upper red resistive levels. Pound should be traded alongside other positively correlated pairs such as GBP/JPY, GBP/CHF, GBP/AUD and GBP/HKD. These pairs have a strong positive correlation with pound of up to +0.93 with pound and are thus expected to have a similar price action. Only buy or sell euro if all the other positively correlated pairs are giving the same signal.

Trade Recommendation:

Hold onto long position with your targets at 1.4455 and 1.45446. Sell positions will only be ideal incase the price turns bearish below 1.42772, or along either of the upper red resistive levels.