10/07 Cable continues to fall below 1.54


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Cable continues to fall below 1.54 with candles now lying just above the lower uptrend channel. With candles now drawing near the lower trend channel, traders should pay attention to it as any breaking of candles below the trend channel would signal a further drop in prices any reversal pattern would sent the pair back up to re-test the daily 200 EMA. Currently, candles have yet to give any signals of a continuation of the bearish run nor a break below the trend channel and traders should be patient and await for entry signals.

 

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Observing the H4 chart, candles have broken below Fibonacci Expansion 200.0% at 1.5395 but now forms a higher low just above the trend channel. The region in blue represents a possible support region and should candles show a clear break above 1.5395, it is possible to engage in a longing position for a swing trade. However, should candles break below the trend channel, candles are expected to plunge towards the next possible support level at Fibonacci Expansion 261.8% at 1.5231.

 

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Focusing on the hourly chart, candles start to form a double bottom formation with the resistance at 1.5413. For scalpers who are looking to engage in a trade, should candles break above 1.5413, it is possible to engage in a longing position towards the next resistance at 1.5462 and should candles continue to remain bullish, the subsequent resistance lies at 1.5543.

 

Trend Direction
 S3
S2
S1
R1
R2
 R3
 
 
Bullish if prices hold above 1.5413 1.5231 1.5270 1.5337 1.5413 1.5462 1.5543

 

 

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