The pair has been trapped within a very tight range since the opening of the week; whilst Stochastic was taken deeper inside the overbought areas. Cable may feel in response to the sign on momentum indicator as the PRZ-potential reversal zones- of the bearish harmonic butterfly pattern are under preparation. A break below 1.6060 will reaffirm the bearish scenario suggested for intraday traders. On the upside, areas of 1.6250 should protect bears.
The trading range for today is among key support at 1.5880 and key resistance at 1.6250.
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 1.6165 targeting 1.5975 and stop loss above 1.6250 might be appropriate.|