Bulls weakening | 02 Agustus 2017

Wave Analysis:

The cable continues consolidate around its previous day's opening price 1.32111 and is not showing any signs of continuing long. We expect the previous day's bearish rally to be an onset to a corrective wave count and should not go beyond the support level 1.30246. If this level is broken, then a possible bearish wave count towards 1.27735 will be inevitable. But as it is, we expect a bullish wave count with our target still fixed at 1.36624. This pair should be traded alongside EURUSD, AUDUSD, NZDUSD, GBPAUD and GBPNZD. These pairs have a strong positive correlation and will move in the same direction. These pairs are diretly opposite to USDCHF and USDJPY. While you'll be looking to buy the first pairs, look for short positions in these two.

Trade Recommendations:

Expect a possible bullish price rally towards 1.36624.