Richard Perry
Independent Analyst
With five consecutive days of gains the outlook for Sterling has now changed from corrective back to bullish once more. The intraday hourly chart shows that a series of higher lows are now in place over the past few days and corrections are being bought into. Yesterday there were two key technical positive technical events, the break above the reaction lower high within the sell off at $1.6874 and the correction which found support at $1.6855 which was around the old resistance of the highs of 19th/20th May. The dovish Fed meeting minutes last night certainly gave Cable a boost however the bulls are now looking to build from the support of the 89 hour moving average which is now rising at $1.6841. The bulls will look for a retest of $1.6920 above which would re-open $1.6975. There is support at $1.6832 but the key level is at $1.6800.
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