Morning Report

The cable pushed to the upside, after nearing main support 1.6245 - the neckline for the previously shown bearish technical pattern - and stabilizing trading around 1.6400. The stochastic shows overbought signs and bearish cross over signs that are about to show, thus we see that a final ascend will reverse the correction to the upside and target the required bearish momentum to resume the bearish direction. Consequently, the expected direction for today remains bearish and moving downwards targeting chiefly reaching 1.6245, while keeping in mind the importance of the four-hour closing below 1.6445 for chances of the bullish technical pattern to fail moving to the awaited downside today - shown in the side image - .

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.

RecommendationBased on the charts and explanations above our opinion is selling the pair at 1.6440 and targeting 1.6310 and stop loss above 1.6520, might be appropriate.