A gap below 1.2029 | 16 January 2017

Wave Analysis

Earlier today, the cable hit our first take profit when it gaped below the support level 1.2029. As long as the pair remains below this level, we expect a bearish acceleration towards 1.1524 and possibly lower. In the meantime, we're waiting for minor bullish pullbacks to the just broken support level to give us low risk sell opportunities. The anticipated bearish acceleration is the continuation of the impulsive wave (5) to the lower side with our previous target still in it's place. Expect a similar wave count in EURUSD and NZDUSD. These pairs will have a similar price action during this intraday.

Trade recommendations:

If you're not short already, wait for minor pullbacks towards 1.2029 to go short with an ideal target at 1.1524.