Respecting our classical series, Cable has collapsed violently during the Asian session where it succeeded in breaching through 38.2% Fibonacci retracement of the upside wave from 1.5270 to 1.6165 as seen on the main four-hour chart. Now, the path is clear towards 61.8% level while 1.5720 represents a potential support that may cause fluctuation; noting that RSI 14 will help this level to slow down the bearishness. The allover trajectory is still bearish since the daily basis shows how Stochastic is on its way to the downside. Assessing trend indicators, Vortex over four-hour time scale reflects the strength of the descending wave. We will not talk about the extended technical targets of the classical pattern until we seeCable beating 61.8% Fibonacci retracement.
The trading range for today is among key support at 1.5475 and key resistance at 1.6000.
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, selling the pair around 1.5825 targeting 1.5610 and stop loss above 1.6000 might be appropriate.|