GBPUSD – Flat
Wave Analysis:
GBP/USD is currently trading with a bearish bias. Yesterday, cable traded short and even tested a key daily support 1.4054. The current upward movement is a corrective rally towards 1.4193 before continuing short. Ideally, as long as the pair trades below 1.4193, we expect a downward rally with our first target at 1.4054. A break below this level will push the price further low to 1.3831. We will only buy upon a clear breakout above 1.4193 with our first target at 1.4289 and the next target at 1.4406. The Cable should be traded alongside NZD/USD and AUD/USD. These pairs have a strong positive correlation of up to +0.95 and will likely have a similar price action during this intraday. Only buy or sell Cable if the other pairs are giving the same signal.
Trade Recommendations:
Wait for retracements towards 1.4178, then sell the pair with you first target at 1.4054, and the next target at 1.3831. Only buy if the retracement goes clearly above 1.4193.
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