Like a squirrel on a washing line cable is still being kept in check by the upper channel line which today comes in at 1.5550.

gbpusdh4 01 05 2013

Also adding to the topside weigh down is the 100 DMA at 1.5562 which helped cap the rally yesterday. It’s the first time this indicator has come into play since January. Above there we have the 50 fib level at 1.5604 so all in all there’s quite a bit of tech resistance for the bulls to take out.

Below there’s minor support down at 1.5522 with stronger down at 1.5475.

UK mfg PMI could provide the action this morning. The last three months have come in below expectations with two below the magic 50 number. I can’t see us posting a much higher than expected number and if we do then we’ll see a good pop in cable.