Cable reacted well yesterday, coming down to 1.5853 from 1.5890. Cable was basically sidelined yesterday, and there was justthis one trade to go for, and once that was completed we were quiet. Overnight has seen little action also, and we have maintainedbelow the daily pivot at 1.5876.
We know support is in the 1.5850/45 area, and it is only a break below 1.5845 where we would find weakness coming backinto the market and declines then likely down to 1.5805. Here shorts to be covered. If below 1.5800 we see 1.5783/80 oncemore as the targeted area.
Weekly charts do remain looking strong, and where the Euro broke below key weekly trendline support...Cable never did andmaintained key support area. There is scope for Cable to reach upper boundaries of 1.6150 over the next few weeks. Todayhowever resistance is at 1.5910. If above 1.5915 we see 1.5955 initially and a break of here sees 1.5990.