Morning Report

The Cable failed to close above the pivot resistance on the four hour charts at 1.6515 resulting in a reversal to the downside in an attempt to breach the key support at 1.6385 yet the 61.8% correction at 1.6355 was an obstacle for the pair. The short term trend remains to the upside supported by bullish signs from the stochastic indicators where we expect the pair is to target 1.6685 It is important to note that the uptrend for today is valid as far as 1.6355 is intact where a breakout of this level will change the short term trend to the downside targeting 1.6000.

The trading range for today is among the key support at 1.6000 and the key resistance at 1.6685

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 1.6380 to 1.6500 and stop loss below 1.6315 might be appropriate.