Morning Report

The Cable surged to the upside near a critical level around 1.6700, which will help determine the next short term trend for the pair. As we see in the image above, we expect the pair to correct to the downside from the 1.6754 resistance level, supported by the overbought signals seen on momentum indicators that may take the pair to 1.6640 – 1.6580, where a breach of the latter will open the way towards 1.6350 and 1.6000 respectively. From here we need to carefully monitor the 1.6580 level as it is one of the key support levels on the intraday and short term trends.

The trading range for today is among the key support at 1.6350 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

RecommendationBased on the charts and explanations above, our opinion is selling the pair from 1.6745 to 1.6640 and stop loss above 1.6830 might be appropriate.