Richard Perry
Independent Analyst
The 5 week rally is coming under further pressure today as the 21 day moving average (around $1.5350) which has been supportive through the rebound is now being tested. This is the latest questioning of the strength of the bull control over the past few days since the bearish key one day reversal flipped the positive sentiment on its head. Daily momentum indicators continue to deteriorate. I have been saying for a while that whilst the intraday support at $1.5300 remains intact the outlook will be positive, however this assertion is becoming increasingly strained as a series of lower highs and lower lows have been formed over the past few days. It looks as though, in the least, Cable is entering into a more choppy ranging phase of trading with the bulls having relinquished control at $1.5552. There is a lower high that now comes in at $1.5458 that could prove to be a key near term barometer. I am increasingly expecting to sellers to take hold at lower levels.
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