Cable forming falling wedge, breaks range bounded trend for 1.49
It has been spotted out that the process of falling wedge formation is underway (observe two trend lines).
Break out of trend range: The pair has now been able to break the range bounded trend (1.5155 - 1.5830) and sustains for three consecutive days.
Now has been bearish mood for this pair as it clears this range that we kept urging that there would be range bounded swings from last couple of months (Since May).
In between, the pair has also made an intermediary channel at 1.5475 levels where it has acted as resistance and support several times in the past (see yellow colored circled areas along with the steeping trend line).
RSI: Currently, RSI (14) trending near 39.4568 levels converging beautifully to the existing price declines, it is interpreted as continuation pattern as this leading oscillator signals more downward potential.
Stochastic: Although the there is neither a trace of overbought nor oversold situation, it alarms bears trying to take over the rallies as the slow stochastic noises with %D line cross over below 20 levels (current %D line flashes at 18.9034).
Hence, we would foresee GBP on weaker side in medium term perspectives, however minor upswings available in short run should be utilized for shorting. Any firm jump could only be possible from 1.4975, thereby strong support is seen from that level.
Break out of trend range: The pair has now been able to break the range bounded trend (1.5155 - 1.5830) and sustains for three consecutive days.
Now has been bearish mood for this pair as it clears this range that we kept urging that there would be range bounded swings from last couple of months (Since May).
In between, the pair has also made an intermediary channel at 1.5475 levels where it has acted as resistance and support several times in the past (see yellow colored circled areas along with the steeping trend line).
RSI: Currently, RSI (14) trending near 39.4568 levels converging beautifully to the existing price declines, it is interpreted as continuation pattern as this leading oscillator signals more downward potential.
Stochastic: Although the there is neither a trace of overbought nor oversold situation, it alarms bears trying to take over the rallies as the slow stochastic noises with %D line cross over below 20 levels (current %D line flashes at 18.9034).
Hence, we would foresee GBP on weaker side in medium term perspectives, however minor upswings available in short run should be utilized for shorting. Any firm jump could only be possible from 1.4975, thereby strong support is seen from that level.
