Richard Perry
Independent Analyst
I have been talking about the importance of key near term support at $1.6020 and with the support breached yesterday I feel that further downside will be seen. This arguably needs confirmation with a close below the support (which is yet to be seen) but I see further pressure on the level in due course. The hourly momentum indicators have unwound with little real sign of any buying pressure on Cable and as has now been the case over the past week, rallies will continue to be used as opportunities to sell. The former support at $1.6080 has now turned into an important near term level of resistance as it capped the upside on Wednesday and in effect has taken the form of a right hand shoulder in a six day head and shoulders top pattern. A decisive move above $1.6080 is now needed to defer the corrective outlook
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