The cable was forced to move to the downside to rid of negative signs strongly appearing on momentum indicators yesterday, at the same time attempting a bearish correction that will retest through it main support - previously breached resistance - at 1.6500. We await the stability of this level to push the pair to the upside and resume the expected bullish short term direction, which targets 1.6780 mainly. It is vital that 1.6500 remain intact in the four hour close so that today's bullish expectations may prevail.
The trading range for today is among the key support at 1.6375 and the key resistance at 1.6780.
The general trend is to the upside as far as 1.4840 remains intact with targets at 1.7200.
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|Recommendation||Based on the charts and explanations above our opinion is buying the pair from 1.6500 targeting 1.6640 and stop loss below 1.6405, might be appropriate.|