Daily Technical View, July 25th
Cable peaked above 2.0650 but it retraced a bit and is now trading under the 2.0600 support level. With divergence formed on the daily charts and slowing upside momentum we can start looking for a candlestick top pattern to form in order to consider changing the long bias and start opening short trades. A move south will have to bring the pair closer to 2.0500 to give a more stronger bear signal, closest support level is at 2.0450 followed by the 2.0365 former resistance now turned support and also a .50 Fib of the last move up. Conversely if the pair regains some strength we might see new highs being made this week, above the current trading price we can look at 2.0650 and 2.0700 for future resistance and levels that will act as bullish targets.
Resistance Levels
* 2.0700- round number
* 2.0650 – round number
Support Levels
* 2.0360 – July 11high
* 2.0200 – Round number
* 2.0133 – April 18th High
* 2.0060/70 – April 25th High
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Analysis by Bogdan Parascanu of FX Instructor
