Weekly Report 14/11 -18/ 11/ 2011
Cable has soared once more after touching the key support level around 1.5890 which represented the neckline areas of our previous suggested classical pattern-check the previous report-. Now, having a look at the daily chart will clarify that the pair is facing a very sensitive area around 61.8% Fibonacci retracement of the entire downside rally from 1.6615 to the significant low of 1.5270; noting that the classical pattern discussed earlier didn't fail since trading continues below 1.6165 areas. In the interim, SMA 200 started to play the role of a ceiling for short term trading; whilst 1.5890 becomes the floor supported by SMA 50. The pair should get rid of one of those two edges to tell us where it will move over upcoming period. Henceforth, we will stay aside despite the positivity appearing on Stochastic until the pair beats the trendless zones.
The trading range for this week is among key support at 1.5585 and key resistance at 1.6440.
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 an actionable setup introduces itself to pinpoint the upcoming big move.|