Weekly Report 12/03 -16/03/ 2012
The Fibonacci rhythmic dominating the movements of Cable since July, 2011 suggests a potential bearish harmonic 5-0 pattern as seen on the provided daily chart. Friday's collapse is another indication that the key support of 1.5640 will be taken soon or later. Assessing indicators, Vortex -trend indicator- is definitely negative; whilst RSI 14 is on the way to the downside within the bearish momentum channel. Of note, the aforesaid harmonic structure always reaches extended targets beyond C levels but we will eye the soft technical objective around 1.5420 zones for the time being.
The trading range for this week is among key support at 1.5360 and key resistance at 1.5975.
The general trend over short term basis is to the downsidetargeting 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 1.5680 targeting 1.5430 and stop loss above 1.5890 might be appropriate.|