Waiting for a clear rejection from 1.2465 to continues short | 21 February 2017

Wave Analysis:

Instead of going short below 1.2414 as previously forecasted, the cable retraced higher than expected but is currently finding it a hurdle closing above 1.24652. Unless there’s a clear break above 1.24652 and most importantly above 1.25268, we choose to remain flat temporarily and wait for a clear rebound from 1.24652 to go short towards 1.222 or even lower 1.19874. Any buy executed above 1.25268 will mean we continuing long but should not go above 1.2725. As long as we’re flat in this pair, we choose to remain flat also in EURUSD. These two pairs have a strong positive correlation of up to +78% and will have a similar price action during this intraday.

Trade Recommendations:

Remain flat momentarily.