Cable tested the awaited resistance we mentioned yesterday around 1.5880 level as shown on chart, and currently attempting to reverse direction. We anticipate another attempt towards 1.5800 support. A test of 1.5800 will form a possible head and shoulders pattern 1.5800 is its neckline. RSI remains negative below 50.00 points threshold. Accordingly, we continue to expect a downside move today.
The trading range for the day is expectedamong key support at 1.5600 and key resistance at 1.6000.
The general trend over short term basis is to thedownsidetargeting1.4225as far as areas of1.6875remain intact.
|Recommendation||Based on the charts and explanations above we recommend, selling the pair around 1.5900 targeting 1.5800 and 1.5650. Stop loss above 1.6000.|