The 50% correction was able to halt further declines for the cable yesterday, where it rebounded to the upside towards the pivot resistance at 1.6585; where it is currently forming a neckline for a bullish technical pattern, where a breakout will result in an upside rally on the intraday term. This breakout is confirmed by a four hour closing above the mentioned level with targets at 1.7045, yet do note a strong resistance level at 1.6745. We expect high volatility with the attempt to breach the neckline, where trading must remain above 1.6445 for the incline to become valid.
The trading range for today is among the key support at 1.6250 and the key resistance at 1.7045
The general trend is to the upside as far as 1.4840 remains intact with targets at 1.7100
|Recommendation||Based on the charts and explanations above, our opinion is buying the pair with the breach of 1.6585 to 1.6745 and stop loss below 1.6475 might be appropriate.|