short | 05 October 2017

Wave Analysis:

For the past few days, the corrective wave (D) has been extending to the lower side and is still pretty much bearish both on the daily and weekly charts. With that in mind, we expect a possible extension of this correction to the lower side but should not go beyond the lower trend line where we'll be looking to buy the impulsive wave (E) to the upper side but should not go beyond 1.39. This view can only be invalidated in case the price ends up breaking below the lower trend line, if this is the case, then we expect further corrections to the lower side but should not go beyond the end of the first impulsive wave (A), 1.2744. This pair will have a similar price action with GBPAUD, and GBPNZD. These pairs have a strong positive correlation and will move in the same direction today.

Trade Recommendations:

Remains short with your target along the lower trendline.