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.