Yesterday's recovery was limited as well with the negative closing below SMA 50-red- where the daily candlestick has drawn a long upper shadow as seen on the provided daily chart. Having said so, we believe that the bearish momentum remains strong enough to send Cable to the downside over intraday basis. Some kind of fluctuation might be witnessed due to the oversold sign appearing on Stochastic. A break below 1.5650 will accelerate declines; whilst taking 1.5880 will give us a rational technical reason for pause.
The trading range for today is among key support at 1.5460 and key resistance at 1.5880.
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 1.5730 targeting 1.5515 and stop loss above 1.5880 might be appropriate.|