Over the past few days I have been increasingly talking about the key role of support that the 89 day moving average (now $1.6893) has played on Cable throughout 2014 and yesterday the rate hit the support. Now, the technician in me is desperate for this to once again come in and provide a floor for the price as it has done on each of the three other major corrections this year. The problem is that if it starts to break down then I think we could be in the process of a major change of outlook for Cable. The sell-off is now into the 12th day but is showing initially positive signs in Asian trading. Incredibly, as with EUR/USD, on the intraday hourly chart it is the 89 hour moving average (now $1.6954) which seems to be the basis of resistance for the rallies/consolidations. Again, intraday momentum simply looks to just be unwinding from an oversold position currently. There is a resistance band $1.6930/$1.6955 which needs to be overcome and if this can be seen then the prospect of a meaningful recovery can begin. If the downtrend continues then the next support is not until $1.6844.

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended Content


Recommended Content

Editors’ Picks

AUD/USD trades with mild positive bias near 0.6700, RBA Meeting Minutes eyed

AUD/USD trades with mild positive bias near 0.6700, RBA Meeting Minutes eyed

The AUD/USD trades with a mild positive bias near 0.6695 during the early Asian session on Monday. The weaker US Dollar provides some support to the pair. The Fed’s Bostic, Barr, Waller, Jefferson, and Mester are set to speak on Monday.

AUD/USD News

EUR/USD: Could FOMC Minutes provide fresh clues?

EUR/USD: Could FOMC Minutes provide fresh clues?

The EUR/USD pair advanced for a fourth consecutive week, comfortably trading around 1.0860 ahead of the close. Progress had been shallow, as the pair is up roughly 250 pips from the year low of 1.0600 posted mid-April. 

EUR/USD News

Gold looks to extend uptrend once it confirms $2,400 as support

Gold looks to extend uptrend once it confirms $2,400 as support

Gold price continued to push higher last week and rose above $2,400 on Friday, gaining nearly 2% for the week. Investors will continue to scrutinize comments from Fed officials this week and look for fresh hints on the timing of the policy pivot in the minutes of the April 30-May 1 meeting.

Gold News

AI tokens could really ahead of Nvidia earnings

AI tokens could really ahead of Nvidia earnings

Native cryptocurrencies of several blockchain projects using Artificial Intelligence could register gains in the coming week as the market prepares for NVIDIA earnings report. 

Read more

Week ahead: Flash PMIs, UK and Japan CPIs in focus. RBNZ to hold rates

Week ahead: Flash PMIs, UK and Japan CPIs in focus. RBNZ to hold rates

After cool US CPI, attention shifts to UK and Japanese inflation. Flash PMIs will be watched too amid signs of a rebound in Europe. Fed to stay in the spotlight as plethora of speakers, minutes on tap.

Read more

Majors

Cryptocurrencies

Signatures