Possible pullback mode towards 1.2222 | 11 January 2017

Wave Analysis:

Yesterday, the cable opened at 1.2160, went as low as 1.2106, but ended up closing at 1.2175, just a few pips above it's opening price. The previous day's candle is an onset of a possible bullish pullback and should not go beyond 1.2227; from where we'll be looking for low risk sell opportunities. Instead of going short immediately, we choose to remain flat momentarily and wait for this pullback to rebound around 1.2227 then go short. The anticipated bearish wave count is the continuation of the impulsive wave (5) towards 1.2029. Buy positions may only be reconsidered upon a clear break above 1.2222. Expect a similar wave count in EURUSD, AUDUSD, GBPHKD and NZDUSD. These pairs have a strong positive correlation of up to +85% and will have a similar price action during this intraday.

Trade Recommendations:

If you're not short already, wait for minor pullbacks towards 1.2222 then go short with an ideal target at 1.2029.