GBP/USD bounced from 1.2358 | 16 November 2016

Wave Analysis:

As anticipated, the cable fell but could not go beyond a key demand level 1.2458. As as long as this level protects the lower side, we expect a possible rebound from this level to go long, otherwise, any clear developments below $1.2448 will confirm the continuation of the downward rally towards the lower trend line or even lower. A short term support level can be seen around $1.2378 while a key resistance can be seen at $1.2715, a breakout below this short term support, $1.2378, will signal a possible increase in sellers and could push the price towards $1.2028. Expect a similar price action in GBP/HKD, EUR/USD, and EUR/AUD. These pairs have a strong positive correlation of up to +92% and will have a similar price action during this intraday.

Trade Recommendations:

Remain short with the first target at $1.2378 and the next target at $1.2028