Bulls eying a possible break above 1.2743 | 06 December 2016

Wave Analysis:

As previously forecasted, the cable rose to the upper side but is yet to break above the resistance level 1.2743. We are waiting for a clear breakout breakout above this level to go long with our first TP at 1.2981. However, as long as 1.2743 limits any movements to the upper side, we expect a possible rebound from this level to culminate into a bearish wave count towards 1.2029 and possibly lower. The latter is highly unlikely since the other positively correlated pairs, EUR/USD, NZD/USD, AUD/USD and GBP/HKD, are very bullish and will likely remain bullish for the better parts of this trading day. Only buy or sell the cable if the other positively correlated pairs are giving the same signal.

Trade Recommendations:

Wait for a clear breakout above 1.2743 to go long with the first target at 1.2981. Any clear rebound from 1.2743 will call for short positions with a target at 1.2029.