Weekly Report 15/08 -19/ 08/ 2011

Following our suggested Elliott count over hourly interval, we can notice that a potential TZ formation for the fourth internal wave. Since areas of 1.6475 could be the place of the bigger B wave, we believe that the pair is on its way to achieve the bigger C wave for the upside rally from the significant low of 1.5780. Therefore, Cable may place the internal fourth wave around 1.6335 - important Fibonacci level- before starting the last internal wave of C wave. Only a break of 1.6475-1.6500 will negate the bearish outlook, proposed for this week. Coming back below 1.6250 will triggerpanic sell-off actionsthis time

The trading range for this week is among key support at 1.5875 and key resistance at 1.6745.

The general trend over short term basis is to the downside, targeting 1.4225 as far as areas of 1.6875 areas remain intact.

Previous Report

Support1.62501.61251.60701.60001.5935
Resistance1.63651.64701.65501.66301.6745
RecommendationBased on the charts and explanations above our opinion is, selling the pair around 1.6335 targeting 1.6125 and stop loss above 1.6500 might be appropriate.