In line with yesterday's scenario, the pair succeeded in clearing the psychological levels of 1.6000 as seen on the provided daily graph. The consecutive daily closing above 50% Fibonacci retracement of CD leg for the bullish harmonic AB=CD pattern is seen as a technical preparation for touching the second technical objective of the harmonic structure at 61.8% retracement level. Fibonacci of 61.8% may represent a technical obstacle that will slow down the recovery which started at 1.5270 zones since RSI 14 is nearing overbought areas. But, Fibonacci of 76.4% will be under our technical microscope as it represents the targeted level of Cable's corrections. Conversely, coming beneath 1.5820-1.5780 zones will bring the major bearish picture back into focus.
The trading range for today is among key support at 1.5780 and key resistance at 1.6295.
The general trend over short term basis is to the downsidetargeting 1.4225 as far as areas of 1.6875 areas remain intact.
|Recommendation||Based on the charts and explanations above our opinion is, buying the pair around 1.5990 targeting 1.6280 and stop loss below 1.5820 might be appropriate.|