Despite yesterday's aggressive inclines but the pair couldn't achieve a daily closing above our detected pivotal resistance areas of 1.5720. Now, we will move to the daily studies where we notice that yesterday's recorded high around 1.5780 has forced Cable to move downwards as it represents 38.2% Fibonacci retracement of the entire downside wave from 1.6615 to the significant low of 1.5270. Furthermore, SMA 50 provided the chart with a very solid resistance meeting 38.2% level. Those abovementioned negative technical factors contradicts the positivity appearing on momentum indicator-Stochastic- thus, the intraday traders should have some rest from our bearish technical trip which we started at 1.6075 on November, 14. It is time to watch the market until a rational technical setup presents itself over coming sessions; noting that, yesterday's closing was a monthly closing and we will discuss the monthly candlestick structure sooner.
The trading range for today is among key support at 1.5420 and key resistance at 1.5935.
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 presents itself to pinpoint the upcoming big move.|