Remain short | 01 February 2018

Wave Analysis:

After a pulling back, the cable could not break above 1.4214-1.4197, rather, it bounced off and is currently heading to the lower side, this is a possible bearish dominance signal, and as long as the price remains below 1.4214-1.4197, we choose to remain short, our expectations is that this pair should continue short with an ultimate target at 1.4000 or even lower. This pair should be traded alongside AUDUSD, EURUSD, GBPHKD, NZDUSD, and GBPSGD, These pairs have a strong positive correlation of up +63% and will move in the same direction today. Only buy or sell the cable if the other pairs are giving the same signal.

Trade Recommendations:

Remain short towards 1.4000.