19 May 2016, GBP/USD
GBP/USD is currently trading with a bullish bias. Yesterday, the pair traded long and even broke above the minor resistance level 1.4480, following this breakout, we expect further movements to the upper side. The anticipated upward rally should be the continuation of wave (c) but should not close above 1.47290. The current downward rally to be a mere retracement, and should not close below 1.45433 from where we'll look to continue long. This view can only be considered futile should the anticipated pullback close below 1.4480, if the latter is the case, then we expect an acceleration to the lower side but should not close below 1.4106. This pair should be traded alongside GBP/USD, GBP/CHF, and EUR/JPY. These pairs have a strong positive correlation of up to +0.92 and will have a similar price action during this intraday.
If you are not long already, wait for the current downward pullback to end along 1.45433, then go long with you target at 1.47290. Sell positions are only recommended below 1.4543 with targets at 1.4480, and 1.4406.
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