This market overshot on the downside when it fell from 1.54 to 1.48 in a few short days. There are two ways of viewing such a sell-off, a final capitulation at the end of a move or an indication that the down side is the weak side and that more losses are likely. I’m in the latter camp for now.
Support is clear now at 1.4800 and at 1.4950/1.5000 on a more short term timeframe. Initial resistance is at 1.5180 (38.2% of 1.5820/1.4785) but the preferred entry level for me is at 1.5425, which is the 61.8% retracement and the broad bearish trend line. This is also close to the 1.55 breakdown level.
These are wide ranges, as is usual in cable, and patience will be required. Trading the edges of 1.4950/1.5180 in the short term and similarly, 1.4800/1.5425 in the medium term, is my suggestion.
