Morning Report

The consolidation continued around the initial support of 1.5590 where 23.6% Fibonacci retracement of the downside rally from 1.6615 to the former low of 1.5270. Actually, the negative daily closing below SMA20 & SMA50 combination is seen as a proof that Cable may clear the aforementioned important level. At the same time, Stochastic continues reflecting its bearish tendency; thus, we hold onto our bearish predictions over intraday basis, supported by the harmonic outlook over short term basis. A break of 1.5420 will accelerate declines towards 1.5270.

The trading range for today is among key support at 1.5375 and key resistance at 1.5820.

The general trend over short term basis is to the downside, targeting 1.4225 as far as areas of 1.6875 areas remain intact.

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Harmonic short term outlook

RecommendationBased on the charts and explanations above our opinion is, selling the pair below 1.5590 targeting 1.5270 and stop loss above 1.5780 might be appropriate.