29 August 2016, GBP/USD
Yesterday, the cable formed a bearish engulfing candle just before the close of the trading day. The candle touched the upper trend line forming top of the contracting triangular pattern but ended up below it. During this intraday, we expect to continue short with the impulsive wave (E) but should not go beyond the lower trend line. This view is highly likely since the previous motive wave (C) was extensive in nature and went a bit far than expected, thus wave (E) should be short than both wave (A) and wave (B). Expect a similar impulsive wave in AUD/USD and NZD/USD. These pairs have a strong positive correlation of up to +0.92 and will have a similar price action during this intraday.
Remain short with an ideal target at 1.3015 and the next target at 1.2871