The pair managed to close above 20Dsma in the previous session. It happened after 18 trading sessions. Whenever the cable closes above 20Dsma, on the very second day the pair closes in the deep red. It represents the 20Dsma acting at the trend decider level. In yesterday's session the pair took support at the descending trend line. The pair has immediate resistance at 1.6181, 1.6196, the 50.0 fib level, above this, the 4-month descending trend line is acting as a strong resistance level. The cable has been struggling to give an upside breakout from the wedge pattern. The pair has good support between 1.6135 to 1.6126, the 38.2 fib level.
Resistance 1.6182, 1.6196, 1.6227
Support 1.6135-1.6126, 1.6080, 1.6030
For an intraday view, the prices are trading above 12ema and 35DEMA. The cable has support at 1.6144, below this, 1.6126 and 1.6116 will act as support levels. The selling pressure will increase below 1.6116 and a candle h4 close below the descending trend line will create panic. We recommend buying above 1.6181 target 1.6226 levels. Selling below 1.6144, with target at 1.6126, 1.6116, 1.6090, 1.6075 and 1.6040 levels. Safe selling below 1.6125.
