[B]GBP/USD[/B]
Cable’s steep fall from 1.9731 resumed in early European session today . Break of rising trend line support (1.8517 to 1.8834, now at 1.9563) suggest that fall from 1.9913 has already resumed for a retest of 1.9480 low first. Break will confirm and bring further weakness towards 1.9237/61 cluster support (23.6% retracement of 1.7047 to 1.9913 at 1.9237). Touching 1.9603 resistance will turn intraday outlook consolidative first.
In the bigger picture, bearish divergence conditions are being displayed in weekly RSI, daily MACD and RSI. Sustained break of the mentioned trend line support will confirm that whole rise from 1.8517. Decisive break of 1.9237/61 cluster support will add much weight to the case that whole medium term up trend from 1.7047 has already completed earlier than we thought, before reaching 2.0106 cluster resistance (1992 high, 100% projection of 17047 to 1.9024 from 1.8090 at 2.0067). Much deeper decline should be seen towards next cluster support at 1.8834 (38.2% retracement of 1.7047 to 1.9913 at 1.8818) first.
However, a strong rebound from or above 1.9237/61 will indicate that cable might made another high before finally topping out on the above mentioned divergence conditions.