Wave Analysis:
For the past few days, the cable has been pulling back to the upper side but is yet to hit our turn around level 1.27706 but is currently showing signs of a possible decline in an upward momentum. As long as the the level 1.27706 protects the upper side, we expect the level 1.2725 to have marked the end of the corrective wave (b) and that the current downward rally is the unfolding of the impulsive wave (c) towards 1.2029. Any clear breakout above 1.27706 may invalidate the anticipated downward rally and could lead to a possible bullish price rally towards 1.3040 or even higher. Expect a similar wave count in EURUSD, NZDUSD, AUDUSD, GBP/AUD and an exact opposite price action in USDJPY, USDCHF and NZDJPY.
Trade Recommendations:
As long as the level 1.27706 protects the upper side, expect a possible rebound around this level to go short with an ideal target at 1.2029. Buy positions are only recommended above 1.27706 with the first target at 1.30403.
Origin: FreshForex
