Richard Perry
Independent Analyst
The selling pressure has returned for Cable as the crossroads that I spoke above a few days ago has resulted in an about turn in the rally and the sellers to resume control. The falling 21 day moving average (c. $1.5140) continues to act as a good basis of resistance, whilst the RSI once again cannot breach the mid-40s and the $1.5200 resistance area shown on the intraday hourly chart has provided the ceiling. Broken 4 day uptrend on the intraday hourly chart reflects the deterioration, as do the hourly momentum indicators which are now in bearish configuration. There has been a slight rebound overnight but I would now be looking at strength as a chance to sell again, with resistance around $1.5120. The bulls will point to the support that has formed around $1.5030 which was an old key resistance and could become supportive, however I would expect further pressure on this level today once the rebound runs out of steam. I expect a retest of the $1.4948 low in due course. Resistance comes in also around $1.5160 before $1.5200 again.
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