Contracting wedge Formation | 07 Abril 2017

Wave Analysis:

Since 28th March 2017, the cable entered into a contracting wedge not going above or below the trend lines forming top or bottom of this wedge. Unless there's a clear break out of this wedge, we choose to remain flat momentarily and wait for this breakout to go short or long depending on the direction. A break below this wedge will call for short positions with an ideal target at 1.222 while a break above this wedge will mean we're waiting for a break above the resistive trend line on the daily chart (Shown below) to confirm the continuation of the upper ward rally towards 1.2725.

GBPUSD Daily Chart:

Expect a similar wave count in GBPHKD and AUDUSD. These pairs will have similar proce action during this intraday.

Trade Recommendation:

Remain flat momentarily