Richard Perry
Independent Analyst
I continue to say this but the technical rally on Cable is a little more advanced than on the euro and could be the leader in terms of either an upside break or a resumption of the selling pressure. My expectation is that the resistance band $1.4950/$1.5000 which has been so strong for the past few weeks will once more play a role in driving the profit-taking in this run higher for the past four days. The main caveat I have for this outlook is that the Stochastics have bounced strongly in the past four days as Cable has posted four strong candles all of which closing towards the high of the daily range. That makes today’s trading very important as it is already testing this $1.4950/$1.5000 range. The intraday hourly chart shows a sequence of higher highs and higher lows, with positive configuration on the hourly momentum indicators. Yesterday’s peak at $1.4970 is the initial resistance, with support back around $1.4880. Today’s trading could be pivotal for the medium term outlook.
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