Still correcting itself downwards | 21 December 2017

21 December 2017, GBP/USD

Still correcting itself downwards

Wave Analysis:

During the previous trading day, the cable pulled back slightly to the lower side despite the previous forecast that it should spike upwards. This downward rally is mere correction and should not go beyond the daily support line seen at 1.3305. As long as this support protects the lower side from any possible bearish violation, we expect a possible rebound from this zone to long this pair with an ideal target at 1.3477. If this level is broken, then we expect to continue upwards with the next impulsive wave (3) towards 1.4365. This pair should be traded alongside GBPAUD, GBPCHF, GBPAUD and GBPHKD. These pairs have a strong positive correlation and will move in the same direction today.

Trade Recommendations:

Rebuy the cable around 1.3305 towards 1.4365

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Bob Stan
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