18/03/15 Cable closed below 1.48 yesterday


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Cable closed below 1.48 yesterday just above Fibonacci Expansion 127.2% at 1.4723. Current bearish momentum observed on the daily chart continues to remain strong but with the release of U.K Claimant Count Change later in the day, volatility is bound to increase which may change the trend direction. Should prices continue to fall, our focus would be on Fibonacci Expansion 141.4% at 1.4604 where candles may find exhaustion.

 

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Observing the H4 chart, candles yesterday found resistance at 1.4854 and subsequently went back on the bearish trend. However, candles failed to break below the previous low after reaching a lowest of 1.4722, showing a weakened selling action in the market. The slowdown in selling action in the market could possibly be due to the release of U.K Claimant Count Change later in the day where speculators may see a change in trend direction.

 

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Focusing on the H1 chart, selling action in the market was observed to weaken upon touching 1.4723. Candles yesterday closed with long shadows signalling uncertainty in the market and hence, it is not advisable to enter any trades before the release of U.K Claimant Count Change later. However should candles continue to remain above 1.4723 after the release of the news, traders can engage in a longing position to trade the double bottom formation.

 

Trend Direction
 S3
S2
S1
R1
R2
 R3
Bullish if candles remain above 1.4723 today 1.4434 1.4604 1.4723 1.4854 1.4950  1.5000    

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