Morning Report

The Cable was able to breach the minor resistance level yesterday at 1.5935 to slightly incline and near the pivot resistance at 1.6020 – the neckline for a bullish technical pattern. The stochastic indicator has entered an overbought area which may result in mixed trading around the latter yet we expect the pair to breach it at the end to incline on the intraday basis targeting 1.6200 as it represents a cluster resistance area that we must monitor since a breach will open the way on the short term to continue the incline as far as 1.5800 is intact. Note that the BoE rate decision is on queue at 11:00 GMT.

The trading range for today is among the key support at 1.5550 and the key resistance at 1.6300

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 with the breach of 1.6020 to 1.6200 and stop loss below 1.5935 might be appropriate.