Cable continues to fall within the trend channel as prices continue to fall towards region of 1.56. Candles are expected to continue falling within the trend channel but swing traders should be highly cautious of the 200 EMA. For intraday traders, it is possible to await for a shorting opportunity which may occur later in the day with the release of U.K Current Account which may add additional pressure on the pair, pushing prices towards regions of 1.55 this week.
Observing the H4 chart, candles continue to find resistance at 1.5790 but prices continue to hold above 1.5683, a resistance turned support. Any breaking of 1.5683 would send the pair lower, with the first possible exhaustion level at Fibonacci Expansion 127.2% at 1.5648. Traders can engage in a shorting position should prices break below 1.5683 today but stop loss should be moved to entry price level once prices have reached 1.5648. Should prices even fall lower, traders can should shift their focus towards Fibonacci Expansion 161.8% at 1.5572.
Focusing on the hourly chart, candles have found exhaustion at Fibonacci Expansion 200.0% at 1.5672. For intraday traders, they should await for candles to break below the support price at 1.5672 and short the pair towards Fibonacci Expansion 261.8% at 1.5594. Overall, although trend direction as observed on the daily chart appears to be bullish, but considering the H4 and hourly chart, bullish momentum have started to break down and should candles continue to form lower lows, we should start to see a downtrend in the short to medium term.
|Bearish if prices hold below 1.5672||1.5594||1.5648||1.5672||1.5790||1.5850||1.5910|