Richard Perry
Independent Analyst
After 8 consecutive days of declines, there are tentative signs of some support for Cable. After the first positive trading day since 15th July, the rate is now into its third day of trading above the late June reaction low at $1.6950. Interestingly this is happening with the RSI back to around 40 which was where the latest key reaction low from early June. The intraday hourly chart shows that there is now a barrier forming at the $1.7000 level where there have now been three failed attempts to break through in the past three days. Hourly momentum indicators have recently turned lower and suggest that the European trading is slightly on the back foot early on. With a 50 pip trading band now having formed a break either way should lead the next move. With the trend your friend, the balance of the indicators continue to suggest that this move will be lower, but for the meantime we await the next break.
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