Weekly Report 30/01 -03/02/ 2012
After achieving consecutive 10 bullish closings, Cable started to show huge signs of trend exhaustion where Stochastic over daily basis-main chart- has overlapped negatively as well. Areas of 1.5785 represent solid resistance while the four-hour chart presents a confirmed negative divergence on RSI 14 as seen on the subsidiary image. As a consequence, we may witness possible bearishness during this week but not before clearing 1.5615 zones. On the other hand, areas around 1.5785 should act as ceiling to protect our scenario.
The trading range for this week is among key support at 1.5360 and key resistance at 1.6025.
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 below 1.5615 targeting 1.5390 and stop loss above 1.5785 might be appropriate.|