I mentioned yesterday the importance of the 1.53250/200 level, the level initially found some buying interest but eventually failed. The bears saw this as a major sign of weakness and started selling aggressively sending Cable 70 pips lower in a hurry.
Cable continues to trade on the heavy side with the 50 Fib now under attack, a solid close below the 50 will see the momentum pick up on the downside.
Selling intraday rallies now looks like the best play going forward with the 1:1 (Light Blue) and 23.6 fib that coincide at 1.53060 a good place to jump in on this current move.
* A 1:1 refers to a current correction being equal in length to a prior correction
ABOUT REECE MARINI