Cable fell after UK CPI y/y turned negative for the first time this year. Cable plunged to a low of 1.5445 yesterday with candles closing at 1.5511 yesterday on the daily chart. Paying attention to the Fibonacci Retracement, candles now just touch 23.6% at 1.5519 where a continuation of the bullish uptrend may occur. However, given the strong bearish momentum of the pair now and candles have broken below the 200 EMA, the pair is expected to continue falling further today. Although expectations of the pair remains bearish as of now, but with the release of FOMC Meeting Minutes later, trend direction may be altered accordingly.
Observing the H4 chart, candles were exhausted at Fibonacci Expansion 200.0% at 1.5457 and a retracement is expected. Candles continue to remain just above the uptrend line where we may see a possible continuation of the bullish uptrend. However, a possible resistance may occur at Fibonacci Expansion 161.8% at 1.5523 where we may see a possible continuation of the bearish run of the pair and should candles break below the major uptrend line, we may see the pair continue falling for the weeks ahead.
Focusing on the hourly chart, candles start to retrace slowly but continues to find resistance at 1.5523. However, should candles close above 1.5523, attention would turn to the next resistance at the price region between 1.5558 and 1.5583. For intraday traders, it is possible to engage in a shorting position should candles continue to find resistance at 1.5523 but do bear in mind the release of FOMC Meeting Minutes later.
Trend Direction | S3 | S2 | S1 | R1 | R2 | R3 | |||
| Bearish if candles hold below 1.5523 today | 1.5189 | 1.5349 | 1.5457 | 1.5523 | 1.5558 | 1.5583 |