Weekly Report 09/01 -13/01/ 2012

The pair has slipped violently downwards respecting the momentum resistance appearing on Stochastic as we anticipated in Friday's reports. Cable is now capped below very solid resistance areas-previous broken support zones- as follows:

1-SMA 202-SMA 50 3-Fibonacci 23.6%

Thereby, we believe that 1.5360 will fall sooner where a break of which will bring panic sell-off actions over short term basis. The harmonic outlook reveals the obvious bearishness, expected during the upcoming sessions.

The trading range for this week is among key support at 1.5075 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.

Previous Report

Harmonic Outlook

RecommendationBased on the charts and explanations above our opinion is, selling the pair around 1.5460 targeting 1.5180 and stop loss above 1.5650 might be appropriate.