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Corrections to the upper side

22 September 2016, GBP/USD

Corrections to the upper side

Wave Analysis

The cable is currently trading with a declining upward momentum. Bears appear to be encroaching the market thus its too risky to buy this pair, we expect the current upward rally to be a mere corrective move and should not go beyond the upper resistive trend line. Instead of going short immediately, we wait for bearish confirm candles along the upper trend line to to give us the green light to continue short with the impulsive wave E. This view will only be invalidated in case the current upward correction end up breaking above the upper trend line. If the latter is the case, then we expect an possible acceleration to the upper side. Trade this pair alongside EUR/USD, NZD/USD, AUD/USD and GBP/HKD, These pairs will have a similar price action during this intraday.

Trade Recommendations:

Wait for a clear rebound from the upper trend line to go short with ideal target at 1.2873. Buy positions are only recommended above 1.3187.

Graham Osano
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