Wave Analysis:
As anticipated, the cable traded short but not with the momentum with which we expected. The pair is reluctant to rush to the lower side, at the same time, there is no significant momentum to the upper side. Nonetheless, the weekly chart is pretty much bearish and will likely push the price further to the lower side, thus, the current upward rally( on the 4H chart) is a mere pullback and should not go beyond 1.2412 from where we’ll be looking for low risk sell opportunities. The anticipated downward rally should be the completion of the impulsive wave (c) but should not go beyond 1.2029. This pair should be traded alongside GBPAUD, GBPCAD, GBPHKD and EURUSD. These pairs have a strong positive correlation of up to +89% and will have a similar price action during this intraday.
Trade Recommendations:
If you’re not short already, wait for minor pullbacks towards 1.2412 to go short with an ideal target at 1.2029.
Origin: FreshForex
