Wave Analysis:
Yesterday, the cable got rejected from a key pivot level 1.2414, headed straight to the lower side but is currently rallying around a key demand zone 1.2343-1.2358. Unless there’s a clear break below this zone, we choose to remain flat momentarily and expect a possible bullish rebound from around 1.2345 to continue long with the impulsive wave (5) with our first target at 1.2414 and the next target at 1.2725. Alternatively, even after a rebound from 1.2345, conservative traders should wait for a break above 1.2414 to confirm the continuation of the upward rally towards 1.2725. Expect a similar wave count in GBPHKD, EURUSD, AUDUSD and NZDUSD. These pairs have a strong positive correlation of up to +85% and will have a similar price action during this intraday.
Trade Recommendations:
Expect a possible rebound from 1.2345 to go long with the first target at 1.2414 and the next target at 1.2725. Alternatively, conservative traders should wait for a clear break above 1.2414 to go long towards 1.2725. Sell positions may only be recommended below 1.2345 with a target at 1.2182
Origin: FreshForex
