After explaining our technical overview over short term basis in the weekly report, we will move to the daily studies where we can see how the correction from the former low of 1.5360 continues towards SMA 20-colored in green-. Having a deeper look at the retest levels, we will notice that 23.6% Fibonacci retracement of the entire bearish wave from 1.6615 to 1.5270 represents a very solid resistance. In the interim, a potential momentum resistance may start affecting Cable negatively once it is touched. Thereby, the bearishness is in favor over intraday basis; whilst a break back below 1.5460 will accelerate declines.
The trading range for today is among key support at 1.5270 and key resistance at 1.5780.
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 1.5585 targeting 1.5270 and stop loss above 1.5780 might be appropriate.|