In the UK today, better Construction PMI failed to keep cable supported. NY traders entered and seized the opportunity to sell the pair below the trend line support at the 1.6003 level (now resistance) and explore the bearish side of the bullish/bearish ledger.
- The selling stalled at the 100 hour MA (blue line) at the 1.59667 currently. The low reached 1.59657 and quickly bounced .
- For the bears/sellers, a break below this MA level is needed to put added pressure on the longs.
- Targeted support under the level comes in at 1.5951 (50 % retracement), the 200 hour MA/61.8% retracement at the 1.5925/29 area.
With the 100 hour MA (blue line above) holding, there is reason to think the bulls remain in control. They would trump the selling below the trendline on the hold.
- For the sellers to take some control, I would like to see them hold the correction against the 1.5986-93 area (see chart below).
- A move above the 1.6003 broken trendline would not be welcomed by any bears.
