Just as in the euro, the cable pulled back upwards, but is still bearish on the daily and the lesser time frames. Today, and in the next few days, we expect this corrective three wave cycle to extend downwards but should not go beyond the daily support level seen at 1.3540. As long as this support is not violated, we expect a rebound from it, to pick a long position with my target at 1.4800. A break below, 1.3540 may mean we’re heading lower with an ultimate target at 1.3120. This pair should be traded alongside GBPHKD, GBPCHF, GBPNZD and GBPSGD. These pairs have a strong positive correlation of up to +62% and will move in the same direction today.
Expect further bearish moevments towards 1.3540 or even lower