Cable shows more signs of weakness
Analysts keep eye on 1.6159
Technical analysts at Digital Look noted on Wednesday that the prior day's candlestick took out cable's support at 1.62-1.6230.
"This level was the 61.8% Fibonacci retracement and its loss shows yet another sign of weakness for the pair”, they explained.
They further point out how cable has stopped for the moment at the technical level of support which comes in at 1.6159 - the low for the candlestick formed on 16 September.
“If cable ends up breaking through this support, then it would be logical for the pair to move towards the origin of the movement at the September low of 1.6050,” they concluded by saying.