Morning Report

The cable achieved a sharp descend yesterday evening due to a bearish (double top) technical pattern formation that took the pair towards main support levels at 1.6675. However, this bearish trend is almost near to completing the bullish harmonic pattern, where we think it will carry the pair once again to return to move upwards after insuring possible reversal levels for it around 1.6675 - 1.6655. Thus, we expect an overall intraday bullish direction for today targeting 1.6850 - 1.6900 and requires trading to stabilize above 1.6655 to close the four hours.

The trading range for today is among the key support at 1.6515 and the key resistance at 1.6875.

The general trend is to the upside as far as 1.4840 remains intact with targets at 1.7200.

RecommendationBased on the charts and explanations above our opinion is buying the pair from 1.6675 targeting 1.6850 and stop loss below 1.6600, might be appropriate.