Richard Perry
Independent Analyst
The daily chart continues to show a variety of signals that provide quite a clouded near term outlook. Taken across the past two weeks the chart has gone basically nowhere. This is being reflected in the momentum indicators which are almost entirely neutral (although the Stochastics have a slightly positive skew currently). With two days of consecutive gains perhaps the bulls come into today’s trading feeling the more confident, however that is unlikely to persuade much conviction today in front of the FOMC. The intraday hourly chart shows the range play that continues for sterling without any real sense of breakout, coming with hourly momentum indicators that continue to move around fairly benign levels (RSI remains below 70, whilst Stochastics have rolled over again). Today is a wait and see day with technical signals giving us few clues. Until resistance at $1.5670 is breached or support at $1.5470 is broken it is difficult to take the outlook with any conviction near term.
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