Richard Perry
Independent Analyst
Although the range of the past 5 weeks continues, one day can really change the outlook of a chart and yesterday’s sharp decline has the potential to be just that. The sharp decline means that the dollar strength has dragged Cable back to test the lows around $1.5540, but for now the range remains intact. The continued bearish configuration on the momentum indicators suggests that the dollar strength will ultimately prevail to break Cable lower, but for now we must wait. Once more the intraday hourly chart shows the RSI dipping back to 30 where the support has come in again. So now today becomes an important day for the general outlook. If Cable is unable to retrace some of yesterday’s weakness and pull back above the initial resistance at $1.5600 then the bears will begin to gain the control and serious pressure could be mounted on the lows of the range. There is further resistance in the middle of the range around $1.5640.
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