Elliott waves for Forex correlation analysis – We’re long with an ideal target at 1.3071

GBPUSD – Flat Wave Analysis: Yesterday, the impulsive wave (i) broke above the upper resistive trend line and even ended above it. We expect the second retracement to this trend line to have marked the end of the corrective wave (iii) that the current upward rally is the unfolding of the impulsive wave (iii) and should be extensive in nature. This view can only be rendered futile in case the pair end up below 1.27803, if this is the case, then an acceleration to the lower side is inevitable. While you’ll be looking to long this pair, short USDJPY and USDCHF. These last two pairs have a strong negative correlation of up to -89% and will move in opposite price action with the cable during this intraday. Trade Recommendations: Expect a possible bullish price movements towards 1.3071
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