Cable just could not break the 1.6275 resistance and failure took us lower as expected...We have reached the first predicated target of 1.6165 and as we are oversold now on the 60 min charts there is scope for us to trade a little higher to unwind the oversold indicators. Now if we look at the 240 min and daily charts we see that there is scope to trade lower and 1.6125 would be the next targeted area.

We would view at this point to cover all shorts to here. We would expect a bounce to correct the oversold indicators, but rallies are looking limited to 1.6200/20 now and this is where we will encounter sellers once more...Join sellers in any correction to this resistance point as we see weakness prevail after this..

As stated support is at 1.6125...If therefore we lose 1.6160 we are going to go quite a bit lower with 1.6065/55 then
the targeted area.

The article was first published by CharmerCharts