Observe another unit in Melee/Engaged

[futbolguy6]

Can a unit use observe on an enemy unit in melee with another friendly unit?

Example: Cody want to use his Observe free action on an enemy unit of B1 Droids engaged in melee with friendly Phase II unit, so the Phase II unit could use those Observe Tokens on their turn while engaged in melee combat? 

Thank you!

[TalkPolite]

Hello,

The Observation Token entry states: 

"As a card action or free card action, a unit with the Observe X keyword can choose an enemy unit at range 1–3 and in LOS."

Therefore, Cody would be able to use the Observe X action on an enemy unit in range that was engaged with another trooper unit. 

Hope that helps! 

TP