Wave Analysis
Yesterday, the corrective wave (4) traded short but could not go beyond the support level 1.2412. Following this rejection, we expect an accelaration to the upperside towards 1.2725 and may go further to the upperside but should not go beyond 1.2938. If you’re not long already, wait for a clear breakout above 1.2634 to give us the green light to go long. Alternatively, you could wait for minor bearish retracements to go long. This pair should be traded alongside USDJPY, USDCHF, CADJPY and NZDJPY. These pairs have a perfect negative correlation to the cable and will move in exact opposite price action during this intraday.
Trade Recommedations:
Conservative traders should wait for a clear breakout above 1.2634 to go long with the first target at 1.2725 and the next target at 1.2934.
Origin: FreshForex
