Richard Perry
Independent Analyst
The long term technical outlook on Cable remains weak and even though there has been an element of support which is retained above $1.5032, there is still the realisation that this is merely a consolidation within the long downtrend and that momentum indicators are simply unwinding to renew downside potential. That is not to say that there is not any room for further rebound. The RSI is unwinding but is currently around 37 and tends to reach the mid-40s during these consolidation periods. The 21 day moving average which has been a good basis of resistance too is well over 100 pips to the upside still (although is now rapidly falling). Looking at the intraday hourly chart shows that the past two and a half weeks have been characterised by a band of sideways trading between $1.5032 and $1.5270 so there are still plenty of opportunities for short term trading. The current outlook is neutral (sideways moving averages and momentum indicators) with a slight positive bias that could see the resistance around $1.5200 tested. The configuration of the hourly RSI suggests this is a good range play for now.
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