Things don’t look great for the old Cable if we break back below the 1.4580/00 region with stops expected to be seen in this region. The hourly gives you a good idea as to how precariously we are balanced above the 1.4600 level at present although i cant see too much happening to threaten this region until at least Tuesday.
The channel in yellow on the dailyis worth paying attention to as a break below 1.4250 would then open the way for a test of the 1.3650 level as technical based selling accelerates as the base of the channel gives way as we have already seen in the EUR/USD.
It is also worth noting that if we break below that 1.4580/00 region it will see the 5 DMA cross back below the 15 DMA and if that happens you really don’t want to be long. Given that it is good Friday and the markets are thinner than Kate Moss after a weekend of partying i am not going to be initiating anything today or Monday, but come Tuesday morning i would love the opportunity to sell some Cable at a level that allows me to leave a stop above 1.4800. Alternatively i would be happy to sell on the break of 1.4570 with a stop above 1.4680.
