In line with our previous technical comment, Cable has declined achieving a daily closing below SMA 50 and below 38.2% Fibonacci retracement of the entire declines from 1.6615 to the former low of 1.5270 as seen on the provided graph. At the same time, Stochastic continues approaching overbought areas and on its way to overlap negatively; thus, the bearishness came back into focus. All what we need is to witness a sustained breakout below 1.5555 to make sure that the upside recovery was limited below 38.2% as well.
The trading range for today is among key support at 1.5420 and key resistance at 1.5880.
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 1.5680 targeting 1.5420 and stop loss above 1.5795 might be appropriate.|