Cable has moved violently downwards respecting our constructive bearish outlook explained during the past three days. Moreover, it has been able to achieve a negative daily closing below SMA 200 and below the pivotal support-turned into resistance- at 1.5890. Thus, we hold onto our negative predictions over intraday basis supported by the bearishness appearing on Stochastic; noting that a break below 1.5785 will assist bears to dominate the market movements over upcoming sessions. Only a break above the psychological level of 1.6075 will give us a reason for pause.
The trading range for today is among key support at 1.5515 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 remain intact.
|Recommendation||Based on the charts and explanations above our opinion is, selling the pair around 1.5900 targeting 1.5635 and stop loss above 1.6095 might be appropriate.|