Comment: Disappointing as Cable drops last week’s levels. It should now try and base against the lower edge of the Ichimoku ‘cloud’ and the 26-day moving average. Futures volume is almost half March’s peak.
Strategy: Possibly attempt small longs at 1.5235; stop below 1.5130. First target 1.5350/1.5385, then 1.5525/1.5575.
Note how the Lagging Span found support at the ‘cloud’s’ lower edge of October 2009 and how this rallies at a roughly 45 degree angle for the next four months, possibly providing steady upward pressure – momentum is still a long way off being bullish though.
On the Bank of England’s Trade Weighted Index sterling remains close to record lows, as stranded UK tourists know first hand.
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