Weekly Report 21/11 -25/ 11/ 2011
Cable has respected past Friday's scenario flawlessly re-testing the neckline areas of the classical pattern of the four-hour interval where it started to slump breaching the pivotal support-current resistance- at 1.5780- check the previous report-. Moving to the daily studies, we will find that the aforesaid re-testing process has met SMA 50 and the decline from there proved the strength of this SMA. Now, Stochastic may cause some kind of fluctuation but we don't think it will prevent the pair from resuming its southern technical trip below 38.2% Fibonacci retracement of the entire upside rally from 1.5270 to 1.6615. Of note, breaching through 1.5585 zones will bring panic sell-off actions chiefly targeting 1.5415 areas followed by the full correctional level at 1.5270.
The trading range for this week is among key support at 1.5370 and key resistance at 1.6105.
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 1.5780 targeting 1.5425 and stop loss above 1.6000 might be appropriate.|