We had a positive divergence in MACD which caused the index to rise to the top area of the channels. If the bands are broken to the upside, a rally to the 81 area (Monthly Pivot) will be expected.
We have a Harmonic pattern and since the pair is trading at the intersection point of the 2 bands, a rise to 1.45 is likely. As long as the rising channels hold, the weekly strategy is buying the dips.
The pair is in the upper area of its wide trading channel. The rally is speedy and since we are way off the bottom, it is likely that we will have a mild correction to gain energy for another leg up.
We are at the intersection point of the 2 channels which might cause a temporary buying interest in Cable. As long as we are above the Monthly Pivot at 1.5964, there will not be a strong selling pressure in the market. Traders are advised to seek buying opportunities targeting the upper area of the smaller descending channel.
This pair is in the upper area of the channels but since we have a positive divergence in MACD, the chances for a bullish breakout are good. In the short term, a mild downward correction is expected to gain the necessary energy for another rally.