Wave Analysis:
On Monday, the impulsive wave (5) broke out above the expanding wedge formation, hit the highs of 1.40855, but ended up closing below this high. Since then, this pair has shown signs of declining in value but is yet to show any serious moves to the lower side. We expect the current upward rally on the hourly chart to be the unfolding of the corrective wave (b) to the upper side but should not go beyond the short term resistance level 1.40726 where we’ll be looking to sell the impulsive wave (c) with our target being 1.39540. This pair will have a similar price action to GBPHKD, and NZDUSD. These pairs have a strong positive correlation of up to +65% and will move in the same direction today.
Trade Recommendations:
Sell the cable upon a rebound from 1.40726 towards 1.39420
Origin: FreshForex
