Morning Report

The Cable declined yesterday after confirming the breach of the key support at 1.6190, altering the trend to the downside. Momentum indicators have entered an oversold area making us expect an upside correction to reach the broken level in an attempt to retest it, before reversing back to the downside on the short and medium terms with targets at 1.5800 and 1.5400 respectively. A daily close below 1.6190 is needed for the decline to occur.

The trading range for today is among the key support at 1.5555 and the key resistance at 1.6590

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 with the breach of 1.6040 to 1.6190 and stop loss above 1.5965 might be appropriate.