Weekly Report 06/02 -10/02/ 2012

Cable started the week showing bearish tendency; whilst RSI 14 over four-hour interval succeeded in penetrating the value of 50.00 as seen on the graph. Actually, areas of 61.8% Fibonacci of the IM-impulsive- wave from 1.6165 to 1.5360 has played a big rule in sending the pair lower and thus; an important top might have been placed at 1.5880. But, we will not make sure that the bearishness of the third wave will dominate the market during this week unless we witness a sustained breakout below 1.5680 zones.

The trading range for this week is among key support at 1.5360 and key resistance at 1.6165.

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

RecommendationBased on the charts and explanations above our opinion is, selling the pair below 1.5680 targeting 1.5390 and stop loss above 1.5880 might be appropriate.