Cable still remains entrenched in the upward channel we have been following this past week. We have the top of the channel at 1.6315 and the lower end is 1.6210. So we should stay bubbling within the channel as well today... Oscillators have turned negative on the 4hrly charts, but although overbought on the dailies these have not turned yet..
Our first short term Fib is at 1,6225. The base of the trend channel is located at 1.6210, so you can see there is some good support here.. Use 1.6200 as a sell signal and if we break this support we are looking at the market coming sharply lower for 1.6165/60. We would view to cover all shorts to here. Attempt very small longs, but be ready to liquidate longs if we lose 1.6160. A break below here keeps the pressure to the downside and sees further shorts instated for 1.6130/20.
Now if we hold onto the daily pivot at 1.6244 there is scope for another challenge on 1.6275. Cover longs.. Go long on a break
of 1.6285 for 1.6310/15.