The cable continued its pressure on the support levels that wementioned in our midday report yesterday - currently around 1.6335 -, while the bearish technical patterns are close to completion, since we still see that the pair is heading to the downside over intraday and short term. Momentum indicators are currently holding a neutral stance, where we think the pair is gaining enough momentum to push to the downside and breach scattered support levels. From here we see that the general direction expected for today is bearish over an intraday basis; targeting primarily 1.6160 - the 100% Fibonacci extension - and then face more bearish moves towards 1.6000. It is vital that trading remains below 1.6500 so that the expected bearish direction for today will prevail.
The trading range for today is among the key support at 1.6160 and the key resistance at 1.6740.
The general trend is to the upside as far as 1.4840 remains intact with targets at 1.7100.
|Recommendation||Based on the charts and explanations above our opinion is selling the pair with the breach of 1.6335 and targeting 1.6160 and stop loss above 1.6430, might be appropriate|