Cable closed last week above neckline 1.5725, thus insuring that the bullish short term wave’s continuation; however, 61.8% Fibonacci correction stands as a vital barrier that will impede the pair’s ascend. The negativity of momentum indicators could pressure the pair towards a minor bearish correction that would retest the mentioned neckline before resuming the bullish trend for this week; targeting 1.6070 then 1.6255. Note that the breach of 1.5725 and building a base below it will weaken chances of the suggested bullish trend.
The trading range for today is among the key support at 1.5595 and the key resistance at 1.6255.
The short term trend is to the downside as far as 1.6070 remains intact with targets at 1.3800.
Support 1.5785 1.5725 1.5645 0.5605 1.5560
________________________________________
Resistance 1.5870 1.5930 1.5960 1.6025 1.6070
________________________________________
Recommendation Based on the charts and explanations above our opinion is buying the pair around 1.5725 targeting 1.5960 and stop loss below 1.5595, might be appropriate.
