Bullish engulfing candle on the daily chart | 08 February 2017

Wave Analysis:

Yesterday, the cable opened at 1.2469, went as high as 1.2545, and as low as 1.2345 but ended up closing at 1.2504, just a few pips above it's opening price. The previous day's candle is a perfect bullish engulfing candle along a key support level 1.2417. As long as this level protects any invasion to the lower side we expect a possible a possible bullish acceleration towards 1.2725, any clear breach below 1.2417 will push the price to the lower side towards 1.222. Expect an exact similar price action in GBPHKD, GBPNZD, GBPAUD and EURUSD. These pairs have a strong positive correlation of up to +70% and will have a similar price action during this intraday.

Trade Recommendations:

As long as the pair remains above 1.2417, expect a possible bullish momentum towards 1.2725 or even higher. Any clear developments below 1.2417 will push the price to the lower side but should not go lower than 1.222.