Elliott waves for Forex correlation analysis – Wait for correction to rebuy

GBPUSD – Flat

Wave Analysis:

During the previous trading day, we saw a possible extension of both the impulsive waves (5) and (c) to the upper side but is still below our target set at 1.45. During this intraday, we expect a possible correction to the lower side before an active move to the upper side is seen. This view will only be invalidated in case the price end up breaking below 1.3815, this being the case, we expect a possible bearish momentum towards 1.3595. This pair should be traded alongside EURUSD, GBPHKD, GBPSGD, GBPCHF and GBPAUD. These pairs have a strong positive correlation of up to +62% and will move in the same direction during this intraday. Only buy or sell the cable if the other pairs are giving the same signal.

Trade Recommendations:

Wait fotr a possible correction towards 1.3815 then buy this pair.

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