Pound recovery attempt was capped yesterday below 1.5755, and the pair dropped again although it remains above the 5-month trendline support, around 1.5675, according to me, it could trigger an upside corrective reaction.
With the pair at strongly oversold levels and above trendline support at 1.5675, corrective rebound is expected: "We are still dangerously oversold on the daily charts with RSI at 25%. We should therefore be able to hold support and trade higher on a corrective basis only. Trendline support was breached yesterday, but currently we are back above this 1.5675 support and this is quite a positive point."
On the downside breach of 1.5620/04 would add bearish pressure towards 1.5540/34.
With the pair at strongly oversold levels and above trendline support at 1.5675, corrective rebound is expected: "We are still dangerously oversold on the daily charts with RSI at 25%. We should therefore be able to hold support and trade higher on a corrective basis only. Trendline support was breached yesterday, but currently we are back above this 1.5675 support and this is quite a positive point."
On the downside breach of 1.5620/04 would add bearish pressure towards 1.5540/34.
WEEK RANGE
5985 TO 5534
IMPORTANT MID LEVELS
5660,5775,5815
RECOMMENDATION
BUY
By
M.Zohaib Gadit
Forex Trading Consultant
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