Richard Perry
Independent Analyst
I still see sterling as a better performer than the euro and this is shown in the reaction yesterday on Cable with the daily chart showing continued pressure around the old resistance zone $1.4950/$1.5000. This trading sequence could therefore take on extra significance as if the sterling bulls are unable to make the decisive breakout this time with the constant pressure then it could be a big turning point. I thought that yesterday, with the head and shoulders top pattern that had formed that the bulls had already run out of fight but they have hung on. The small top pattern on the hourly chart is still intact but only just now, with a move above $1.4980 now would be enough to abort it. A decisive breach would then re-open the rally high at $1.5050. Hourly momentum is again more positive for sterling than on the euro. The uncertainty over the near to medium term outlook continues. Yesterday’s low at $1.4853 is the key near term support now.
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