A possible bearish pin bar | 09 December 2016

Wave Analysis:

As anticipated, the cable retraced towards 1.2734 but ended up closing at 1.2584, just a few pips below it's opening price, 1.2622. The previous day's candle is a perfect bearish pin bar, and should push the price further towards 1.24044 or even lower. As long as the level 1.27700 limits any invasion to the upper side, we expect a possible bearish wave count towards 1.2029. This bearish rally is highly anticipated since other positively correlated pairs, EUR/USD, EUR/CHF, EUR/CAD, and EUR/CAD had bearish engulfing candles on their daily charts and will likely maintain a bearish bias during this intraday.Expect an exact opposite wave count in USDJPY, USD/CHF, AUD/JPY and CAD/JPY.

Trade Recommendations:

Remain short with the first target at 1.24044 and the next target at 1.2029.