Until now, we didn't witness any four-hour closing above the former resistance of 1.6165 that could threaten the classical shape of H&S pattern. In the interim, RSI 14 started to reflect that the pair has lost its upside steam and as we mentioned in several occasions before that Cable always accede to the overbought and oversold signals. As for trend indicators, Vortex shows trend exhaustion suggesting that the pair's movements may reverse sooner to the downside. Of note, a break of 1.5960 is needed to confirm this scenario; whilst the risk versus reward ratio becomes too high for intraday traders. Therefore, we will stay aside until the pair achieves clear bearish actions with a long black candlestick to make sure that the negative signs on indicators are accurate as well.
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, staying aside until a new actionable technical setup confirms the bearish signs appearing on technical indicators.|