The cable drifted below 50MSma and the 50.0 fib level in the monthly chart. The cable has support at 1.5894, 1.5855 (November 2013 low) and 1.5750-1.5720 (August 2013 high), and 61.8 the fib level. The cable is trading at 1.5971, an 11-month low, against the US dollar. It is exactly trading at the upper end of the descending rectangle which turned to support from resistance. In case if the cable closes below the 3-year support trend line and 50MSma, we can expect 150 to 200 pips down. On the upside, 1.6015, 1.6163 and 1.6235 will act as strong monthly resistance levels. 1.6015 is acting as weekly resistance level. On the down side, 1.5914 and 1.59 will act as weekly support levels.

Support 1.5950, 1.5900, 1.5850

Resistance 1.6015, 1.6163, 1.6235

Unless the cable closes above 1.6015, the selling will mint the money in the near term. The short-term trend is still looking favorable for bears until closing below 1.6235 levels. For the rest of the year 2014, until the pair closes below 1.6524, we recommend selling on every rise for a downside target at 1.5875, 1.5750 and 1.55 levels, may be even lower 1.5385. This view is valid with sl 1.6525 on a daily closing basis.

For an intraday view, the prices are closed and trading below the hourly key moving averages 12ema and 34hrsma. Now, as of today, opening a new week, the cable held the previous week's low at 1.5952 levels. We are recommending fresh selling opportunity only below 1.5950 levels for a downside target at 1.5875 levels. In Asia's session the cable is trading at 1.5957. On the higher side, the resistance levels are at 1.6029 (12hour high) and 1.6063 (12ema). We recommend fresh buying only above 1.6065.

Trade-

Selling only below 1.5950, target: 1.5875 and 1.5850.

Buying only above 1.6065, target: 1.6090 and 1.6125.