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Perfect bearish pin bar

18 November 2016, GBP/USD

Perfect bearish pin bar

Wave Analysis

Yesterday, the cable opened at 1.2440, went as high as 1.25036 but ended up closing at 1.2418, just a few pips below it's daily opening opening price. The previous day's candle is a perfect bearish pin bar candle. This means, the pressure from the upper side is still intensive and will likely push the price further to the lower side towards the immediate trend line. Any clear breakout below this trend line will lead to an acceleration towards 1.2029 or even lower. Expect a similar wave count in EUR/USD and EUR/AUD. These pairs have a strong positive correlation of up to +83% and will have a similar price action during this intraday. Only buy or sell The cable if the other positively correlated pairs are giving the same signal.

Trade Recommendations:

Remain short with the first target along the lower trend line and the next target at 1.2029

Graham Osano
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