cable is looking much more optimistic since the break if the 233 days simple moving average in the last few weeks and now he faces a key test of its uptrend, with the new test of this key ADM.
When a medium or major resistance level is broken, a key test of the quality of the break may be how it is at the retest. If it is satisfied, then the role of this level has been changed, in which case it would be from a level of resistance to a support. This acts as a confirmation of the break and in this case gives the impression that confidence in the pair is much more optimistic.
So far, the level survived the first round, but that does not mean he will not face another. The 4 hour chart is showing no signs that the move lower is easing. Neither the MACD or Stochastic is showing a loss of momentum at this stage, although the stochastic is crossing potentially oversold territory which is a slightly bullish signal.
I want to see it followed by a movement above the oversold territory and combined with a reversal pattern in price action before becoming again short-term bullish. Further confirmation would then come from a break above the descending trendline resistance around 1.5750.
If we see a daily close below the 233-DMA, it would not necessarily confirm that the uptrend in the cable is finished, by any stretch of imagination. There is still significant support just below 1.5550 around here -. Historically a key support level and resistance and 50% retracement of the move from lower to higher June
Until this is broken, the pair remains in a clear trend medium-term bullish flag formation and remains valid, which is a bullish continuation pattern.
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