The cable to plummet further | 27 ديسمبر 2016

Wave analysis

Yesterday, the cable opened at 1.22855, went as high as 1.2304 and as low as 1.2267, but ended up closing at 1.22856, just a pip above it's previous day's opening price. The previous day's candle is a perfect indecision candle and chances of moving to the either sides are almost equal. Thus, although we expect a possible bearish wave count towards 1.2029, we choose to stand a side and wait for a clear direction to confirm the continuation of the anticipated bearish rally. Otherwise, any breakout above 1.2412 will mean we're headed to the upper side. Expect an exact similar wave count in EURUSD, GBPAUD, GBPCAD and an exact opposite price action in CADJPY, USDJPY and NZDJPY.

Trade Recommendations:

Wait for a break below 1.2227 to go short with an ideal target at 1.2029. Buy positions are only ideal above 1.2412.