Waiting for an upward pullback | 05 اكتوبر 2016

Following the breakout below the wedge, we expect further acceleration to the lower side but should not go beyond 1.205, however, instead of going short with the impulsive wave a, we choose to sit on the sidelines and wait for the corrective wave b to rebound from the immediate trend line to sell the impulsive wave c. This view can only be invalidated in case the anticipated corrective wave b end up breaking above 1.2926, if the latter is the case, then we expect possible bullish price movements towards 1.4111 or even higher. We hope to trade this pair alongside GBP/HKD and EURJPY. These pairs will have a similar price action during this intraday.