The cable today suffered against pretty much all major currencies but in particular against the green back which also strengthened against most major currencies. Price action took this pair to nearly touch the 38.2% Fibo line, as of the London close it hadn’t reached it yet, but the momentum certainly looks like it will in the next day or two. A close overnight below 1.54083, the 38.2% line, would leave room for more downside action with the next support on the 50% Fibo line at 1.52477. Given today’s momentum it wouldn’t be surprising to see that level tested even tomorrow. The ADX/DMI and Stochastic Oscillator both show signs of more downside momentum available before we start needing to fear an oversold market.

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