Morning Report

The secondary image for the four hour interval shows how the initial resistance around 1.6075 succeeded in forcing the pair to move sharply downwards. We can notice the negative candlestick structure formed after touching the aforesaid resistance zones. In the interim, indicators of the four hour time scale reflect clear bearish case. In result, our suggested harmonic scenario on the main daily graph is still valid where we believe that the pair is on its way to reach the second potential reversal zones -D2- at 1.5780 (161.8% of XA leg for the butterfly pattern). The classical outlook for Cable over short and medium term basis can be checked in the link below.

The trading range for today is among key support at 1.5645 and key resistance at 1.6250.

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

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Classical Technical Outlook

RecommendationBased on the charts and explanations above our opinion is, selling the pair around 1.6000 targeting 1.5780 and stop loss above 1.6170 might be appropriate.