Wave Analysis:
Since the begging of this week, the impulsive wave (5) has been in a relentless downward rally and will likely continue short during this intraday. As long as the price remains below 1.720, we expect a possible extension of the impulsive wave (5) to the lower side but should not go beyond 1.16, where we’ll be looking for a possible buy place. On the 4 hour chart above, this pair could continue with this downward rally and therefore buy positions may still not be recommended. While we’ll be looking to short this pair, we’ll also be looking to short other positively correlated pairs such as GBPAUD, GBPCHF, GBPUSD and NZDUSD. These pairs have a strong positive correlation and will move in the same direction during this intraday.
Trade Recommendations:
Remain short towards 1.160.
