Cable came crashing down yesterday, taking out all levels of nearby support. Today we're seeing this weakness continue and are now be looking for the market to come down further till it reaches the medium term 38.2 Fib level of 1.5171.
From here we would expect sellers to cover shorts o we may see a bit of short covering just prior to this support level. Short term 60 minute charts are oversold as we would expect, so a short term corrective rally off these lower levels should not be ruled out.
The correction however looks limited to 1.5330 and here we would expect sellers to once again appear and keep the market depressed. If we fail to hold on to 1.5165, we would expect to see sellers back in the market looking to drive us lower, to 1.5130 initially, then 1.5080/70.
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From here we would expect sellers to cover shorts o we may see a bit of short covering just prior to this support level. Short term 60 minute charts are oversold as we would expect, so a short term corrective rally off these lower levels should not be ruled out.
The correction however looks limited to 1.5330 and here we would expect sellers to once again appear and keep the market depressed. If we fail to hold on to 1.5165, we would expect to see sellers back in the market looking to drive us lower, to 1.5130 initially, then 1.5080/70.
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