21 October 2016, GBP/USD
The cable continues to retrace to the lower side but should not go beyond the immediate trend line. So far, the pair is below $1.2246 and may head further to the lower side as long as it remain below this level. However, in case of any developments above $1.2270, we expect a possible count towards $1.2394 or even higher. This would mean continuing with the impulsive wave (c) towards $1.2438. Expect a similar wave count in USD/ZAR. These pairs had a strong positive correlation of up to +56% and will have an near similar price action during this intraday.
As long as the pair remain below $1.2246, expect a possible bearish price rally towards $1.2025. Buy positions are recommended above $1.2270 with an ideal target at $1.2438