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Bearish momentum developing

28 October 2016, GBP/USD

Bearish momentum developing

Wave Analysis

Following the exhaustion candle witnessed yesterday at noon on the 4Hour, the market fell relentlessly, broke below the channel and is still pretty much bearish. We expect to continue short for the better parts of this intraday but only after minor pullbacks to the just broken trendline. At the moments, the current chart set up is very bearish and buying this pair could be very risky, however, in case of a spike above $1.2224, then we may consider going long. We expect to trade this pair alongside EUR/USD; these pairs have a strong positive correlation of up to +86% and will have a similar price action during this intraday.

Trade Recommendations:

Remain short with the first target at $1.2081 and the next target at $1.2025,.

Graham Osano
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