16 June 2016, GBP/USD
GBP/USD is currently trading with a slight bullish bias. Yesterday, the pair broke above the falling wedge, retraced and tested the trend line forming top of the falling channel but is currently trading above a key level 1.4156. As long as the pair trades above this level, we expect an acceleration to the upper side for wave (c) to close around 1.4281. This view remains valid as long as the pair trades below 1.4156, a clear break below this level may invalidate the anticipated upward rally. This pair should be traded alongside GBP/JPY, GBP/CHF, and EUR/USD. These pairs have a strong positive correlation of up to +0.92 and will have a similar price action during this intraday.
As long as the pair trades above 1.4156, looking for long positions with an ideal target at 1.4281. A clear breakout below 1.4156 will mean looking for short positions with an ideal target at 1.4103.