Comparing between today's chart and the graph published in the weekly report will prove that we have moved with Cable from 50% Fibonacci level to the second technical target of the bullish harmonic AB=CD pattern at 61.8% retracement which was touched yesterday. Studying the historical movements of Sterling claim that the pair frequently tests 76.4% Fibonacci level in its corrections and that means 1.6295 might be reached. But, we prefer staying aside over intraday basis due to the following technical factors:
The exhaustion started to appear on RSI 14 indicator.
The solidity of the aforesaid 61.8% retracement.
Risk versus rewards ratio becomes too high.
Of note, breaching through 61.8% will accelerate the inclines towards our major technical target at 1.6295 if the pair neglected the above mentioned technical factors.
The trading range for today is among key support at 1.5820 and key resistance at 1.6450.
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, staying aside until an actionable technical setup presents itself to pinpoint the next big move.|