Cable faltered on the topside and came lower then for the med term fib level of 1.5069 reaching 1.5066. Now we have bounced off these lows, and overnight have stayed above the 1.5088 level.
This morning we look to 1.5112 for direction. If we can manage to hold onto this support then there is scope for another corrective move back to 1.5170/71. Initially buyers are expected to cover longs to here. Sellers should be waiting here and they will hold shorts unless we see a break of 1.5187. Above here and the market will be looking to be in a better position and we should find there is a small base pattern evident, leading us to trade higher for 1.5220 to 1.5250.
Now this all depends on the ability to hold 1.5012. If we cannot hold this support then the downtrend resumes with another go at the 1,.5088/66 support band. If we lose 1.5060 then sellers will be on the back of this and they will be looking to take the market lower to 1.5020 first target.