With a long lower shadow that tested SMA 50, yesterday's candlestick was formed as seen on the provided daily chart. The pair inclined after this test to stabilize above the psychological level of 1.6000 once more suggesting that the bullish effect of the bullish harmonic AB=CD pattern is still in progress. Fibonacci retracement of 61.8% could be touched soon; whilst 76.4% might be reached later if Cable neglected the overbought sign appearing on RSI 14. To recap, the overall trajectory appears bullish for the time being and a break of 1.6075 will accelerate inclines.
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 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, buying the pair around 1.5990 targeting 1.6280 and stop loss below 1.5820 might be appropriate.|