Cable has just completed a correction down & now seems trapped between a rock (H4 res. @1.6458) and a hard place (1.63, the bearish mid-term confirmation point). While inside this area trading may be choppy & the mid-term direction is definitely not clear. Watch the 78% level about to be tested @1.6433 for clues whether the bulls can sustain this rally in short-term. Above 1.6320 the bias is bullish however the road ahead looks full of obstacles & the current price action on EURGBP may not sustain the idea of a cable rally, at least not for now. Above 1.6458 the next target is 1.6538 (127% extension of the last bear move), while towards the south a break of 1.63 should trigger a move down to 1.6150 (current H4 TL support). CCI is about to turn up but looks rather flat around the 0 level. For the moment my preference is for short-term trades or scalps until key levels are breached on either side.
