Wave Analysis:
Just as in the euro and in the other positively correlated pairs, this pair continues to correct itself to the lower side but should not go beyond the weekly support seen at 1.3770. Yesterday, the price dropped and may continue dropping today and in the next few days. We’re waiting for a possible rebound from 1.3770 to pick a long position with an ultimate target at 1.4825 or even higher. According to the daily chart above, its good to remain flat and only buy a rebound from 1.3770. This pair will have a strong positive correlation to GBPHKD, EURUSD, NZDUSD and AUDUSD.
Trade Recommendations:
Rebuy the cable upon a rebound from 1.3770 and have your target at 1.4825.
Origin: FreshForex
