Wave Analysis
GBP/USd is currently trading with a bearish bias. As previously expected, the pair retraced to the upper side, rebounded from the resistance level 1.4265 and is currently headed to the lower side. Although we expect further movements to the lower side, we will only go short upon a clear breakout below 1.4129. A clear rebound from 1.4129 will lead to a double bottom formation, which means looking for an upward rally towards 1.4406. This pair should be traded alongside GBP/CHF, AUD/JPY, and GBP/JPY. These pairs have a strong positive correlation of up to +0.89 and will have a similar price action during this intraday.
Trade Recommendations:
Remain flat for now and wait for a clear breakout below 1.4129 then go short with you target st 1.4033 and 1.3831. A clear rebound from 1.4146-1.4129 will call for long positions with an ideal target at 1.4406.
Origin: FreshForex
