Cable has collapsed violently forming a long black candlestick pattern as seen on the provided daily Chart. This decline confirms resuming the bearish effect of the potential head and shoulders top pattern of the four-hour interval -check the previous report for more details about this classical probability- where we believe that the pair is on its way to achieve the extended targets of this pattern. Moving to today's chart we will depend on the negativity of yesterday's candlestick to suggest potential breakout below 23.6% Fibonacci retracement of the entire downside move from 1.6615 to 1.5270, chiefly targeting the initial support of 1.5420 and a break of which will send cable lower towards the full correctional level around 1.5270.
The trading range for today is among key support at 1.5375 and key resistance at 1.5880.
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 1.5665 targeting 1.5425 and stop loss above 1.5840 might be appropriate.|