As the British pound has retreated after rising to 1.6163, suggesting consolidation below this level would be seen and retracement to 1.6000 is likely, however, reckon renewed buying interest would emerge around 1.5980-85 (38.2% Fibonacci retracement of 1.5686-1.6163) and bring another rally. Above said resistance at 1.6163 would extend recent upmove from 1.4818 low to 1.6185-90 (1.236 times projection of 1.5104-1.5718 measuring from 1.5427) but near term overbought condition should limit upside to 1.6215-20 (61.8% projection of 1.5427-1.5963 measuring from 1.5886), risk from there is seen for a correction to take place later. In view of this, we are still looking to buy cable on pullback as 1.5980-85 should limit downside. Only below previous resistance at 1.5963 would defer and risk correction of recent upmove to the Ichimoku cloud (now at 1.5933-39) but reckon support at 1.5886 would hold from here. (thanks action forex)
Posted on: Thu, 19 Sep 2013 16:47:31 +0000
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