Wave Analysis
As previously forecasted, the impulsive wave E and 5 traded short but could not go below the lower trend line forming bottom of the wedge. We are waiting for clear rebound signs from the lower trend line to buy this a pair towards 1.41114, otherwise, any clear breakout below the lower trend line may culminate into an acceleration to the lower side with the next ideal target at 1.2798. This downward rally is highly anticipated since the monthly chart is pretty much bearish and if the pair can close the way it is on the monthly chart, then we expect the cable to decline further to the lower side during the next month. Trade this pair alongside USD/ZAR, these pairs have a strong positive correlation of almost 60% and will have a similar price action .
Trade Recommendations:
Wait for a clear rebound from the lower trend line to go long with an ideal target at 1.41114. Any clear breakout below this trend line will call for short positions with an ideal target at 1.2798.
Origin: FreshForex
