29 March 2017, GBP/USD
Wave Analysis:
Unfortunately, our stop got hit yesterday when the pair went below 1.2537. The cable continued short and even went below our short term support level 1.24822. As long as the pair remains below this level we choose to hold onto a bearish bias sentiment on this pair with an ideal target at 1.2359. A break below this level will push the price further to the lower side but should not go below 1.21937. This view is supported by the fact that the daily chart shown below shows that price just rebounded from a significant resistive trend line and will likely remain short as long as it remains below this trend line.
Expect a similar wave count in EURUSD, NZDUSD, AUDUSD and GBPHKD. These pairs have a strong positive correlation of up to +65 and will move in the same direction during this intraday.
Trade Recommendations:
If you're not short already, wait for minor retracements towards 1.2472 to go short with an ultimate target at 1.2153. A break above the upper resistive trend line on the daily chart will push the price further to the upper side but should not go beyond 1.2725.
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