08 September 2015, GBP/USD
GBP/USD is currently trading with a Bullish Bias. The pair crossed above a key level 1.5306 and is now trading above it. As long as the pair trades above this level, long positions are recommended but with the first stop at 1.5369, and the second stop at the 38.2% fib level, any movements above this fib level will signal further movements above. Basically, we anticipate that wave (5) will continue to rally upwards and stop at the key level 1.5369. Traders trading this pair should observe GBP/CAD, and EUR/JPY for positive correlation. The above pairs have a had a strong positive correlation of +0.98, and is still expected to continue moving in the same direction. Thus, only buy/ sell GBP/USD, if the latter pairs are giving the same signal.
As long as the pair trades above the 1.5306 key level, long positions are recommended but with the first stop at 1.5369, and the second stop at the 38.2% fib level. However, should the pair move and close below the key level 1.5369, then short positions are recommended but with a stop at the key level 1.5188.