Despite a massive drop in price seen last trading day, the cable ended up closing at 1.3112. The previous day’s candle is a possible buy signal candle and could mean we’re long with our target at 1.3477 or even higher. If the price can go below 1.3112 by the end of today, then further bearish acceleration towards 1.2811 is expected. This pair should be traded alongside other positively correlated pairs such as GBPAUD, GBPCHF and EURUSD. These pairs have a strong positive correlation and will move in the same direction today.
We’re long with a target at 1.3477