GBP/USD is currently trading with a bearish bias. During the previous trading day, Pound tested the key level 1.4423, but ended up closing below it. As along as pound trades below this level, we will be keen to look for for short positions with targets at 1.4348 and 1.4231. This pair should be traded alongside other positively correlated pairs such as NZD/JPY, AUD/USD, AUD/CHF and CAD/JPY. These pairs have a strong positive correlation of up to +0.80 and are thus expected to have a similar chart pattern. Only buy or sell Cable if all the other positively correlated pairs are giving the same signal.
As long as the pair trades below 1.4423, look for for short positions with targets at 1.4348 and 1.4231.
Margin Trading in the Forex market contains risks and can cause in significant financial losses. Before deciding to trade in the foreign exchange market, make sure that you understand the risks according to your financial experience and knowledge.