Richard Perry
Independent Analyst
The latest rally in sterling which has pulled Cable off the 11 month low at $1.5873 is just now approaching the resistance of the 12 week downtrend once more. However, this has been an excellent indicator for selling opportunities over the past few months, whilst also being flanked by the barrier of the falling 21 day moving average which comes in at $1.6150. The daily momentum indicators are not showing anything substantial in terms of improvement and this still looks to be another chance to sell. The intraday hourly chart shows a series of higher lows have been left in the last 3 sessions, with the pivot level support that has formed at $1.6020 being the first key reaction low. The intraday hourly chart shows the resistance at $1.6135 is being tested and needs to be breached to be able to continue the rebound, however the move is threatening to run out of steam and it is likely that Cable will once again fall over at the first key hurdle. A decisive upside break above $1.6135 opens the key near term resistance at $1.6226.
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