There was an interesting dichotomy between Cable and the euro yesterday (due to the strong reading of UK retail sales), however this gain for sterling could just provide another opportunity today to sell within the range once more. I continue to see Cable as a range trade and I believe that focusing on using the RSI on the hourly chart to generate the signals remains a good strategy. Any move towards 70 on the hourly RSI continues to result in Cable falling over and retrace back towards the lows again. There is a basis of resistance around $1.5720/$1.5730 has also been a consistent stopping area for these rallies within the range. The weak outlook on the daily chart suggests that selling into strength for continued pressure on the lows around $1.5540 remains the best way to play Cable. The key near to medium term resistance remains $1.5825.
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