Morning Report

The Cable reversed to the downside from the key resistance of the minor ascending channel, where as we see in the image above, a bearish technical pattern is under construction with a neckline at the 38.2% correction for yesterday's incline at 1.6485. We expect the pair to correct to the downside towards 1.6425 before rebounding back up to continue the short term trend targeting 1.7100. The stochastic indicator supports our outlook, as far as 1.6385 remains intact on the short term.

The trading range for today is among the key support at 1.5870 and the key resistance at 1.6745

The general trend is to the upside as far as 1.4840 remains intact with targets at 1.7100

RecommendationBased on the charts and explanations above, our opinion is buying the pair from 1.6425 to 1.6565 and stop loss below 1.6330 might be appropriate.