For the past few weeks, the cable has been rallying with an increasing bullish bias momentum but is still below the weekly resistance level 1.32965. This is a significant level and unless there’s a clear breakout above it, especially with a big candle, we expect a possible rebound from it to pick a short position. The anticipated bearish price rally will be the continuation of the impulsive wave (c) and may breakout below 1.27252. This view will only be rendered futile in case the price breaks above 1.32965, and even then, we’ll expect a confirmation that the price will continue upwards towards 1.4192.
Only buy the cable in case of a break above 1.32965.