The cable in corrective mode | 07 December 2016

Wave Analysis:

Yesterday, the cable traded long but could not go beyond the daily resistance level 1.2743. From the current chart set up, it seems the momentum to the upper side is diminishing. And, although there’re signs of reversals from this level, we’re waiting for confirmations to go short towards the lower trend line. This view can only be rendered futile in case the pair end up breaking above the previous day’ s highest high, 1.2773, If the latter is the case, then an acceleration towards 1.2981 is inevitable. In the meantime, we hold onto a bearish bias in this pair. Expect a similar price action in EUR/USD, GBP/HKD and an exact opposite price action in USD/JPY, EUR/JPY, USD/CHF and AUD/JPY.

Trade Recommendations:

Expect a possible bearish price action towards 1.24044.