The cable still to drop | 06 November 2017

During the previous trading day, the cable opened at 1.3056 went as high as 1.3133 and as low as 1.3038 but ended up closing at 1.3075, few pips above it's opening price. The previous day's candle is a perfect bearish continuation candle and as long as the price remains below 1.3088, we expect a possible bearish price rally towards 1.28 or even lower. The anticipated bearish price rally the continuation of the impulsive wave (c) to the lower side and may go below 1.2811. This pair should be traded alongside other positively correlated pairs such as EURUSD, GBPAUD, GBPCHF and GBPHKD. These pairs have a strong positive correlation and will move in the same direction today.

Remain short with your target at 1.2811