Despite a minor consolidation overnight, the selling pressure shows little real sign of abating as Cable moves to within striking distance of yet another support level. The April low at $1.6552 is the next on the list and is the final real support until the key March low at $1.6459 . Momentum indicators remain incredibly weak and the price has been accelerating away from the 5 week downtrend. A stretched near term momentum may mean that there is room for a near term bounce that would give another chance to sell. The RSI reached 25 yesterday (lowest since March 2013) and this does give scope for a rebound. The intraday chart shows initial resistance in at $1.6600 and then stronger resistance at $1.6650. A dovish Yellen speech could give the Cable bears another bounce to sell into this afternoon.
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