12 April 2016, GBP/USD
GBP/USD is currently trading with a bullish bias. Yesterday, the pair traded massively long, broke above 1.4193 and even tested the next resistance level 1.4289. The current downward movement is mere a retracement to the lower side but should not go below 1.4193. A breakout below 1.4178 may push the pair to the lower side with our next target at 1.4045. However, a rebound from the level 1.4193, will accelerate an upward rally with our targets at 1.4289 and 1.4395. Cable should be traded alongside GBP/CHF, GBP/JPY, AUD/USD and AUD/USD. These pairs had strong positive correlation of up to +0.85 during the previous trading week and will likely have a similar price action during this week.
If you are not long already, wait for a clear rebound from 1.4293 or a breakout above 1.4289 to go long with you target at 1.44061. Only sell cable if the current pullback breakout below 1.4178.
Do you have any suggestions to make our website better? Have you noticed an error on the site? Tell us