While Digital Look technical analysts said that cable had shown a clearly bearish tendency over the last few months, they noted on Monday a bullish divergence between the price and the stochastic oscillator.
“This tends to synonymous with a beginning of a bullish impulse that could take the pair to the first target of 1.6227,” they explained.
These experts further noted that a stronger move could take cable to test the upper trend line of the current short-term bearish channel at 1.6260.
“In any case, we believe that with a break above the 1.6227 resistance, it would be logical to expect a further bounce up to around 1.6524”, these experts concluded.
