GBP/USD is currently trading with bullish bias. During the previous day on 22nd April 2016 , the pair broker above a key daily resistance level 1.4406. Following this breakout, we expect the current upward rally to be the continuation of wave (5) with a target at 1.4609. In an alternative case scenario, if the price ends up closing below 1.4395, then we expect a downward acceleration towards 1.4289. If the latter is the case, then its safe to say the price was merely testing this level and will head short in the long run. This pair should be traded alongside GBP/JPY, GBP/CHF, EUR/JPY and USD/CHF. The pairs have a strong positive correlation of up to +0.89 and will likely have a similar price action during this intraday.
As long as the pair trades above 1.4406, expect an upward rally towards 1.4609. A clear breakout below 1.4395, look for short positions with your target at 1.4289, 1.4173 and 1.4062.