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Bearish pullback mode

23 November 2016, GBP/USD

Bearish pullback mode

Wave Analysis:

Instead of going long as previously forecasted, the cable continues to pullback towards the supportive trend line, from where it rebounded from the previous day. As long as the pair trades within the rising channel, we expect to trade reversals, any clear breakout below the lower trend line will lead to an acceleration towards 1.2029 and possibly lower. Buy positions will only be ideal upon a clear rebound from the lower trend line, or upon a clear breakout above 1.2743. Expect a similar wave count in EUR/USD, and GBP/HKD. These pairs have a strong positive correlation of up to +93% and will have a similar price action during this trading day. Only buy or sell the cable if the other pairs are giving the same signal.

Trade Recommendations:

Sell positions are only recommended below the lower trend line with an ideal target at 1.2029. Buy positions are only ideal upon a clear rebound from the supportive trend line or above 1.2743 with an ideal target at 1.3032.

Graham Osano
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