Yesterday, the cable traded with a strong bearish bias, but is currently pulling back. We expect the current upward rally to be a mere corrective rally and should not go beyond the short term resistance level $1.2434. Any clear breakout above this resistance level may culminate into further acceleration to the upper side but should not go beyond 1.1253. Nonetheless, we are not in a hurry to trigger any buy orders at the moment, instead, we look for potential sell signals to continue short with the impulsive wave (c). We hope to trade this pair alongside USD/ZAR. These pairs will have an exact opposite price action during this intraday.
We remain flat for now and wait for a clear rebound from $1.2434 to go short with an ideal target at $1.1798.