Richard Perry
Independent Analyst
There was a very interesting upside break on Cable yesterday. For a few weeks the resistance at $1.5000 had been holding back a breakout with resistance being formed time and time again. A shooting star candle was the result of an attempted breakout last week, but yesterday finally the breakout was achieved and also held. That marks a significant improvement in the outlook. Daily momentum indicators continue to improve and the move looks to be fairly genuine. Although there are market concerns over the uncertainty of the UK general election, the upside break is flying in the face of popular opinion that sterling is likely to weaken. Maybe as we approach polling day on 7th May then there could begin to be a sense of concern, but not at the moment. The intraday hourly chart suggests that the old resistance band between $1.4950/$1.5000 could be a good gauge as if Cable can hold above it then the outlook will continue to improve. Key near to medium term support is now $1.4853.
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