Cable is testing a major 1:1 support level at 1.5670, any failure to attract solid buying interest here will likely see the momentum pick up on the downside.
Cable tested the 1:1 (Blue) support level at 1.5670 and quickly traded 30 pips high in late US trade, the market fell back to test the level for a second time in Asia and again had a strong 45 pip bounce but the market has so far failed to see any real buying with the bears now looking to push for stops below the 1:1.
GBPUSD H1
If we take a look at the 15 minute chart we can see that the smart money has continued to sell cable on rallies with the 1:1 (Pink) and 38.2 Fibonacci level at 1.5785/95 attracting solid selling interest during yesterdays trading session.
The best play moving forward in my opinion is to wait to see if the 1:1 (Blue) either hold or breaks, if a break is seen continue to sell intraday rallies and if a base can form on the 1:1 look to buy into intraday dips.
GBPUSD M15
* A 1:1 refers to a current correction being equal in length to a prior correction
