Cable is developing a negative bias within its near two week trading range now [Video]

Richard Perry Independent Analyst

GBP/USD

With a similar looking configuration to that of EUR/USD, we see Cable is also developing a negative bias within its near two week trading range now. Again a bull failure in yesterday’s session leaves the market at risk of a near term top pattern. The range between 1.2980/1.3185 (205 pips) means that a closing breakdown below 1.2980 would imply a pullback towards 1.2775. It would mean that the 1.2810 old breakout, which is now supportive, would become a prime target area. Momentum indicators are not as developed in their corrective set up as EUR/USD but MACD lines are in the process of now bear crossing, whilst RSI and Stochastics are also sliding. The hourly chart reflects this bear bias, with the resistance now between 1.3100/1.3130 as we look at intraday rebounds increasingly as a chance to sell for a test of 1.2980. Beyond any breakdown, support is initially at 1.2910/1.2940.

Author

Richard Perry

Independent Analyst

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