The acceleration higher in the recovery on Cable has been remarkable. The two strong positive candlesticks that ended last week added over +550 pips as the volatility remains enormous. Incredibly, the recovery has been almost as fast as the sell-off just a couple of weeks ago. The hourly chart shows a little retracement in the move this morning, but the bulls still have control. There is a slight caveat into the European session with small negative divergences on hourly RSI. However, throughout this recovery of the past week, the intraday weakness has been bought into. It may not look like much on the hourly chart, but there is an area of good support $1.2125/$1.2300 for the bulls. Holding above 50 on hourly RSI would maintain a sense of strength in the recovery, but losing 40 (along with MACD lines below neutral) would suggest renewed selling pressure. Resistance has been found at $1.2500, but as we noted last week, if this can be cleared there is little real resistance until $1.2725/$1.2765.
Risk Warning for Financial Promotions
Hantec Markets' various market reports and commentary are issued by Hantec Markets Limited, who is authorised and regulated by the Financial Conduct Authority (FCA) in the UK, No. 502635. The reports are prepared and distributed for information purposes only.
Trading in Foreign Exchange (FX), Bullion and Contracts for Differences (CFDs) is not be suitable for all investors due to the high risk nature of these products. Forex, Bullion and CFDs are leveraged products that can result in losses greater than your initial deposit. The value of an FX, Bullion or CFD position may be affected by a variety of factors, including but not limited to, price volatility, market volume, foreign exchange rates and liquidity. You may lose your entire initial stake and you may be required to make additional payments. Please ensure you fully understand the risks involved, seeking independent advice if necessary prior to entering into such transactions. Before deciding to enter into FX, Bullion and/or CFD trading, you should carefully consider your investment objectives, level of experience, and risk appetite. You should only invest in FX, Bullion and/or CFD trading with funds you are prepared to lose entirely. Therefore, only your excess funds should be placed at risk and anyone who does not have such excess funds should completely refrain from engaging in FX and/or CFD trading. Do not rely on past performance figures. If you are in any doubt, please seek further independent advice.
The reports do not constitute personal investment advice, nor do they take into account the individual financial circumstances or objectives of the clients who receive it. All information and research produced by Hantec Markets is intended to be general in nature; it does not constitute a recommendation or offer for the purchase or sale of any financial instrument, nor should it be construed as such. All of the views or suggestions within the reports are those solely and exclusively of the authors, and accurately reflect their personal views about any and all of the subject instruments and are presented to the best of the authors' knowledge. Any person relying on these reports to undertake trading does so entirely at his/her own risk and Hantec Markets does not accept any liability.
© 2014 Hantec Markets Limited