Cable reacted well yesterday and we saw the market tumble lower, just breaking the uptrend line by a few pips. But it held basically and we are slightly up this morning. Nearby resistance is at 1.6122.. 60 min charts looking to be overbought at this point but 240 min have just turned bullish and spookily enough it hit the 240 min 50% fib level..Now as stated resistance is at 1.6122...if we cannot break this early in the session we are going to find the market coming lower.

The downside does look limited to 1.6070/65 and this is where we are going to be covering all shorts. Go long here as well because the 240 and daily charts show a possible mover higher to 1.6165/70 where the market is going to come under a lot of
pressure to come lower..Sell into any rallies to here, keeping stops above 1.6190.

Above 1.6190 and we can go back to 1.6225/30 before sellers are back in the market.

 

The article was first published by CharmerCharts