Yesterday, the cable opened at 1.27538, went as high as 1.28179 and as low as 1.27233 but ended up closing at 1.27509 just a few pips below it’s daily opening price. The previous day’s candle is a perfect bearish pin bar below a key level 1.27735; as long as the level 1.27735 is not violated to the upper side, we expect a possible decline towards 1.24400. Ideally, this pin bar should act as an onset of the impulsive wave (c) to the lower side. This view can only be invalidated in case the price rise above 1.27735, if this is the case, then an acceleration to the upper side is inevitable. Expect a similar wave count in GBPCAD, EURUSD and GBPHKD. These pairs have a strong positive correlation of up to +85% and will move in the same direction during this intraday.
Expect a possible bearish price rally towards 1.24400