09 September 2015, GBP/USD
GBP/USD is currently trading with a Bullish Bias. The pair managed to close above the key level 1.5369 but failed to hit the 38.2 fib level, it is expected that as long as the pair trades above the key level 1.5369, long positions are idea, but only up to the 50.0 % fib level. Any movements above this level will signal further movements towards the upper side. We however anticipate that the current wave will continue to rally downwards but only up to the 1.5369, before continuing long. Traders trading this pair should observe closely other GBP pairs such as GBP/CHF, and GBP/JPY for positive correlation. These pairs had a strong positive correlation of up to +0.95, thus, they are expected to move in the same direction. Only buy/ Sell GBP if all the three are giving the same signal.
If you haven't bought the pair already, then wait for a bounce at 1.5369, or buy above the 38.2% fib level. However, should the price move downwards and close below the 1.5369, then short positions will be ideal for trading.