Cable chart via Lloyds:
Their commentary:
- We are seeing more two-way price action now that we are back in the midst of the 1.30-1.36 range.
- Our underlying bias is that the rebound from 1.30 is corrective for a move through 1.30 towards 1.28, potentially 1.25. Those lows should define the bottom of a medium-term range.
- If that is the case, any further upside gains should be limited to the 1.34-1.35 region. Much through this area would question this outlook and risk another test of the 1.37-1.39 key medium-term resistance zone.
- Long term, our studies suggest the bear trend that started back in 2007 at 2.1160 is in its last phase. Recent price action increases the chance that 1.1490 was a major long-term low. Even so, there remains a risk of a return to the low 1.20s and possibly a re-test of said spike lows in the next two years.
