Remain short | 21 September 2016

Wave Analysis

Yesterday, the cable retraced to the upper side as previously forecasted but could not go beyond 1.3066. During this intraday, we expect a possible bearish price movements towards the lower trend line and may go even further to the lower side with an ultimate target at 1.2795. Buy positions will only be ideal upon a clear rebound from the lower trend line, or on breaking above the upper resistive trend line forming top of the wedge. We look to trade this pair alongside AUD/USD, EUR/USD, NZD/USD and GBP/HKD. These pairs have a strong positive correlation of up to +0.98 and will have a similar price action during this intraday.

Trade Recommendations:

Remain short with an ideal target along the lower trend line.