Wave analysis:
As anticipated, the pair traded massively short but ended up closing just few pips below its opening price. Although the daily chart is showing signs of diminishing bears momentum, the weekly chart is pretty much bearish and will likely continue short during this week. Thus, the current upward rally, (on the 4hour chart) is mere a pullback and should not go beyond 1.2378 from where we’ll be looking for low risk sell opportunities to continue short with the impulsive wave (c) towards 1.2029. This view can only be invalidated in case the pair end up breaking above 1.2412, if this is the case, then an acceleration towards 1.2725 is inevitable. Trade this pair alongside GBPAUD, EURUSD, GBPHKD and USDJPY, USDCHF, CADJPY. The last three pairs have a strong negative correlation to the first three pairs and will have an exact opposite price action during this intraday
Trade Recommendations:
If you’re not short already, wait for minor pullbacks towards 1.2378 to go short with an ideal target at 1.2029
Origin: FreshForex
