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Technical Analysis – is Cable due another leg down?

In Market Analysis

Cable looks like it is sitting at a very interesting level at the moment:

There has been a down-trend on the currency pair dating back from July 2014.

A pretty strong trend line which is currently splitting today’s daily bar

Taken from the last swing high on 31st Dec 2014 the price has retraced from a low of 1.4950 on 23rd Jan 2015, has bounced off the 61.8% and is currently straddling the 50% Fibonacci retracement level

Hidden divergence on the RSI and Stochastic, both appearing over bought and potentially due a down turn

All of which is happening at a horizontal level of 1.5257

What you should be looking for is a close below this level with negative price action on the day before thinking of taking a short position on this pair