Richard Perry
Independent Analyst
Yesterday’s strong bearish candle which saw Cable close at the low of the day has brought into question the rebound for the first time. I have said that the recovery needs to breach the lower reaction high at $1.6226 for the bulls to be in control. This remains the case, however it seems as though this current move needs to sustain momentum otherwise it will be viewed as yet another rebound within the downtrend and seen as another chance to sell. The momentum indicators are still improving but once again there is much more that needs to be seen to become positive. However, all is not yet lost for the bulls. The intraday hourly chart shows the support in at $1.6080, whilst the key near term support at $1.6020 is also present. Whilst these two levels are intact the prospect of a recovery remain. The price action of yesterday has muddied the outlook somewhat near term, but once the European trading gets underway it will be interesting to see how strong the recovery bulls are.
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