Wave Analysis:
Yesterday, the cable opened at 1.26661, went as high as 1.2725 and as low as1.2528 but ended up closing at 1.2565, several pips below it’s previous day’s opening and closing prices. The previous day’s candle is a perfect bearish engulfing candle and signals a possible increase in the number of sellers in the market. Thus, during this intraday, we expect further bearish momentum to the lower side but only after a clear breakout below the immediate lower trend line. This view can only be rendered futile in case the pair end up being rejected just above the lower trend line forming bottom of the rising channel. Expect a similar wave count in EUR/USD, NZD/USD, AUD/USD and an exact opposite price action in USD/JPY, USD/CHF, NZD/KJPY and CAD/JPY.
Trade Recommendations:
Wait for a clear breakout below the lower trend line to go short with the first target at 1.1524
Origin: FreshForex
