10 November 2016, GBP/USD
Yesterday, the Cable lost 100% the value it gained earlier and is currently consolidating with the short term equilibrium zone $1.2394-$1.2438. Unless there is a clear breakout above or below this this zone, we choose to sit on the sidelines and only sell below $1.2394 towards $1.2297 and only buy above $1.2438 towards $1.2515. Although movements to either sides have equal chances, a bearish impulsive wave count towards 1.2298 is highly likely since the other positively correlated pairs such as EUR/USD and EUR/AUD are pretty much bearish and will trade in the lower ranges today.
Remain flat and wait for a clear breakout below 1.2394 to go short with an ideal target at 1.2298