Cable overnight outlook

GBPUSD m15 (03-23-2016 0050).png

Formation – Expanding falling channel

Outlook – Cautiously bullish

Sterling’s sharp fall left it oversold as per 15-min RSI, with the indicator forming bullish divergence pattern with price chart in the NY session.

The subsequent attempts to recover losses have failed around 1.4220, still the intraday support of 1.4190 (daily low) is being defended.

Thus odds of a quick fire corrective rally to channel resistance of 1.4254 cannot be ruled out.

Recommendation – Long @ 1.42 target 1.4254 Stop 1.4188 

Strategy – Stop is quite tight, but traders may attempt going long again, unless the 15-minute candle closes below 1.4190. Stop however is to be exercised not on closing basis


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