Morning Report

The cable is attempting to remain above the support level for the previously broken ascending channel, where pressure is coming from pivotal resistance at 1.6740; thus, forcing the pair to move to the downside. Looking at the four hour chart, we see that a possible scenario of forming a bullish technical pattern (inverted head & shoulders), where its neckline is at 1.6740 while its right shoulder is completed at 1.6670.Hence we see that the possible direction for today is bullish over an intraday basis, targeting first 1.6900. it is key that 1.6585 remain intact to achieve the bullish direction.

The trading range for today is among the key support at 1.6340 and the key resistance at 1.7000.

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 at 1.6670 and targeting 1.6840 and stop loss below 1.6590, might be appropriate.