In line with our yesterday's techncial comments,the pair has collapsed, reaching 61.8% Fibonacci retracement of CD leg for the bullish harmonic pattern which was the first technical objective, mentioned in the midday report, Thus, the journey of achieving the extended technical targets was limited successfully with stability below 76.4% level. Our suggested megaphone-broadening top- pattern is still in progress, but let us respect the solidity of 61.8% Fibonacci level and the oversold sign of RSI 14 which is always respected by Cable; therefore, we propose potential fluctuation that could take it to test the broken 76.4% at least before resuming the downside rally towards the lower line of the aforesaid classical pattern. Areas of 1.6075, followed by 1.6000 become under our technical microscope.
The trading range for today is among key support at 1.6025 and key resistance at 1.6550.
The general trend over short term basis is to the downside, targeting 1.4225 as far as areas of 1.6875 areas remain intact.
|Recommendation||Based on the charts and explanations above our opinion is, selling the pair around 1.6365 targeting 1.6095 and stop loss above 1.6555 might be appropriate.|