After a massive decline in almost one week, the cable currently recovering above 1.3855, as long as the level 1.3855 protects the lower side, we expect this level to have marked the end of the three wave correction cycle that the current bullish price rally is a continuation phase of the previous five wave cycles with an ultimate target at 1.4800. This pair should be traded alongside GBPHKD, GBPNZD, GBPAUD, and GBPSGD. These pairs have a strong positive correlation of up to +53% and will move in the same direction today. Only buy or sell the cable if the other positively correlated pairs are giving the same signal.
Only rebuy the cable around 1.3855.