Richard Perry
Independent Analyst
The outlook on the daily chart still looks concerning for sterling with all moving averages falling, downtrends intact and momentum indicators still bearishly configured. The prospect of further downside is likely in due course. The intraday hourly chart makes interesting reading though with the breakdown of the support of the old range around $1.5030 now providing the basis of resistance. This old support that has become new resistance is now a key element to the near term outlook, with the hourly RSI and MACD lines having unwound to neutral this should now become a good chance to sell the rally from $1.4948. However if the sterling bulls can make a concerted breach above $1.5030 then there is a possibility of a rebound taking hold. Up to the resistance of the old intraday floor around $1.5080 would then be seen as a band of overhead supply that the bulls may struggle to overcome before the sellers return once again.
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