Richard Perry
Independent Analyst
I must have put the mockers on Cable somewhat yesterday by suggesting that it was one of the few pairs that is trending, because since then it has joined the rest of them in consolidation mode. After three straight bearish candles, showing lower highs and lower lows, sterling has found some support at $1.5666. This is helping to ease the corrective outlook for now, but there is more to be done to prevent a continued retracement. The intraday hourly chart shows the importance of the resistance at $1.5800. This old neckline of the top pattern has been retested almost to the pip and has been strengthened. This is the key test today and if the bulls can mount a challenge and breach the resistance then this would go a long way towards restoring their control. For now the early morning moves suggests consolidation that has unwound the momentum, but with hourly studies showing a bearish bias still the expectation is for a continuation of the drift lower back towards a test of $1.5666 and then the supports at $1.5650/$1.5600.
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