Wave Analysis:
GBP/USD is currently trading with a very slight bullish bias. During the previous trading day, the pair went down almost 300 pips, and is still pretty much bearish. There are chances that during this intraday, the current upward rally will only last up to 1.4079 from where we will be continue short with our target at the support level 1.3878. A break below the latter will indicate persistence of the bearish pressure thus, we will be continuing short upon that breakout. On the contrary, if the pair crosses above 1.4017, look for long positions but only up to 1.4079. Pound should be traded alongside EUR/JPY. This pair have a strong positive correlation of up to +0.85 to pound and is thus expected to have a similar price action with it. Only buy or sell pound if the other pair is giving the same signal.
Trade Recommendation:
Remain long but only up to 1.4079. In case the price turns bearish below 1.4079, then it will be wise to go short immediately, ideally, pound is in an overall downward trend. A clear breakout below 1.3878 will call for further short positions.
Origin: FreshForex
