During the previous trading day, the cable rallied with an increasing bearish momentum and even hit the lows of 1.3456 but ended up closing above its opening price. The previous day’s candle is perfect bullish candle and as long as the price remains above 1.3507, we expect a possible bullish momentum towards 1.41 and should extend higher to 1.4509. The anticipated bullish price rally is the continuation of the impulsive wave (v) to the upper side but should not go beyond 1.45. This pair has a strong positive correlation to GBPHKD and GBPMXN. These pairs have a strong correlation of up to +63% with the cable and will move in the same direction today.
Look for a long position with your target at 1.4509