Weekly Report 13/02 -17/02/ 2012

Cable has moved sharply downwards achieving a negative daily closing below the pivotal level of 1.5785 as seen on the provided chart. The subsidiary image shows the bearish candlestick patterns formed during the past three days. At the same time, RSI 14 over four-hour interval shows stability below the value of 50.00 and thus, the correctional second wave of the suggested Elliott might have been limited around 1.5925 zones. In result, additional bearishness might be seed during this week but not before clearing 1.5730 areas decisively.

The trading range for this week is among key support at 1.5370 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

Harmonic Overview

RecommendationBased on the charts and explanations above our opinion is, selling the pair below 1.5730 targeting 1.5420 and stop loss above 1.5935 might be appropriate.