Morning Report

The Cable gradually inclined yesterday to remain above the key support for the declining channel at 1.5910, seen in the image above. In the secondary image; we see a bearish technical pattern (wedge) that may force the pair to continue the short term decline supported by overbought signals appearing on the stochastic indicator. We expect the pair is to the decline on the short term, after breaching the minor support at 1.5880 to target 1.5555 as far as 1.6150 remains intact.

The trading range for today is among the key support at 1.5555 and the key resistance at 1.6235

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 1.5880 to 1.5760 and stop loss above 1.5950 might be appropriate.