Since hitting a multi-year high at $1.7191, Cable has now corrected 250 pips in just over two weeks, which is quite some move. Whilst I remain positive on a longer term basis the strength of this correction is leading me to question how Sterling bulls might be able to recover control once more. Another disappointing day for Cable continues this drag lower towards the support of the 89 day moving average (now $1.6890) which remains the key basis of support for the major corrections. There is also a band of support around $1.6900. This is now my expectation, that support will begin to form soon, but whether it is a mere consolidation is difficult to say. Normally in bull markets, as Cable has undoubtedly been in for the past year, the support is formed sooner than expected, but this correction has been different and has got me worried for the health of the long term bull run. There is intraday resistance at $1.6960 and then at $1.7000.
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