In spite of a significant bout of dollar strengthening yesterday, Cable effectively continues to range sideways. There has been historic support at 1.3459 which was breached by a handful of pips (very similar to EUR/USD
) only for the support to broadly hold. The market has since rebounded and the bulls are actually coming into this session in a reasonable position still. Yesterday’s bear candle clearly puts a negative bias into this 8 day range that is now 165 pips but if the bulls can survive yesterday’s sharp move then confidence will increase in the development of support. Clearly there is more that needs to be done in order for this to be considered a recovery though. The resistance at 1.3618 is sizeable and only a close above would convince the bulls were truly making ground. Momentum indicators have mellowed a touch but also still remain in negative configuration. The Daily chart
indicators are ticking higher coming into the European session today but there is a minor pivot
around 1.3530 that needs to be overcome if the buyers are to position for recovery today. Initial support at 1.3480.