GBPUSD Elliot Waves Analysis For 23 February 2016 | 23 February 2016

Wave Analysis:

GBP/USD is currently trading with a bearish bias. Following the previous day’s gap down, the pair traded massively short and formed a double bottom at the level support line 1.4079. The current downward rally is a mere retracement towards 1.4079 before we continue long. However, in case the price close below the support level 1.4056, then further short positions will be ideal for trading. In an alternative case scenario, in case the price close above 1.4149, then we will look for long positions with your targets at 1.4220 and 1.4277. This pair should be traded alongside other positively correlated pairs such as GBP/JPY, GBP/NZD, and GBP/CHF. These pairs have a strong positive correlation of up to +0.89 and are thus expected to have a similar price pattern.

Trade recommendation:

Remain short but only up to 1.4079, a breakout below 1.4056 will call for further short positions. Buy above 1.4149 or upon a clear rebound from 1.4079. Buy orders above 1.4149 should have targets at 1.4220 and 1.4277