After recording 1.5813 -high of yesterday's trading- where Cable was very close to our proposed entry point, it moved once more to the downside. The current consolidation is seen as normal price behaviors to assist the pair to get rid of the oversold sign appearing on RSI 14. Overall, the bearish classical pattern is still affecting the pair negatively while one more negative four-hour closing below 50% Fibonacci of the entire downside wave from 1.6615 to 1.5270 will accelerate the awaited decline towards 1.5610 areas. Only a break of the neckline areas around 1.5905 will give us a reason for concern.
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 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, selling the pair around 1.5825 targeting 1.5610 and stop loss above 1.6000 might be appropriate.|