Wave Analysis:
We expected the impulsive wave (c) to extend to the lower side but as it appears, the cable still may continue pulling back to the upper side but should not go beyond the end of the corrective wave (b) 1.27735. If you had short the impulsive wave (c) around 1.27735, just hold onto this position, if not, wait for the current pullback to hit this level to sell the cable. This view can only be invalidated in case the price breaks above 1.27735, if this is the case, then we expect a possible bullish momentum towards 1.33. Expect a similar wave count in GBPCAD, GBPJPY and EURUSD. These pairs have a strong positive correlation of up to +68% and will move in the same direction during this intraday.
Trade Recommendations:
In the long run, expect a possible bearish price rally with an ideal target at 1.24400.
Origin: FreshForex
