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Expect corrections to the upperside.

Expect corrections to the upperside. | 02 September 2016

02 September 2016, GBP/USD

Expect corrections to the upperside.

Wave Analysis:

Yesterday, instead of going short as previously forecasted, the impulsive wave E ended a bit earlier than expected and could not even hit our target. Following the breakout above the upper resistive trend line, we expect an acceleration to the upper side but should not go beyond 1.3429. Expect a similar upward rally in GBP/HKD. These two pairs have a strong positive correlation of up to +0.85 and will have a similar price action during this intraday.

Trade Recommendations:

Remain long with an ideal target at 1.3429.

Bob Stan
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