SMA 50-red- and SMA 100-blue- have provided the pair with some kind of support and thus, Cable started to show signs of slight recovery. The long black candlestick pattern formed on Tuesday reflects the strength of the bearish trend seen since the opening of the week and we expect to witness a retest of the resistance areas between 1.5785 and 1.5820 before resuming the downside rally. Classically, eyes should be on 1.5650 zones followed by 1.5585; whilst upside attempts should be well-capped below 1.5925-1.5975 areas.
The trading range for today is among key support at 1.5515 and key resistance at 1.5925.
The general trend over short term basis is to the downside, targeting 1.4225 as far as areas of 1.6875 remain intact.
|Recommendation||Based on the charts and explanations above our opinion is, selling the pair around 1.5780 targeting 1.5555 and stop loss above 1.5930 might be appropriate.|