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Bullish Momentum Developing

03 October 2016, GBP/USD

Bullish Momentum Developing
Wave Analysis:
As previously forecasted, The cable rebounded from the lower trend line forming bottom of the wedge and is still pretty much bullish on the daily chart. As long as this trend line protects the lower side, we expect a possible impulsive bullish price movements towards $1.41114 or even higher to $1.500. This view can only be in validated in case the price end up breaking below the lower trend line, if the latter is the case, then we expect an acceleration to the lower side with an ultimate target at $1.12808. We hope to trade this pair alongside EUR/JPY and USD/ZAR. These pairs have a strong positive correlation of up to 85% and will have a similar price action during this intraday.

Trade Recommendations:

As long as the lower trend line protects the lower side, look for low risk buy opportunities with an ideal target at $1.41114. Any clear breakout below this trend line will call for short positions with an ideal target at $1.12808

Graham Osano
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