With yesterday’s US data, we may now have the BoE and the Fed vying for the dubious honor of cutting interest rates first, starting an easing cycle among the major Central Banks. Ahead we have little in the calendar that could potentially turn the current rally. With two more days of trading still, we see little reason as well to think in terms of booking profits.
Resistance
- 1.27914 – Daily High / Low
- 1.27462 – Intraday Consolidation Resistance
- 1.27116 – Daily High
Support
- 1.26342 – May 03 High
- 1.25935 – Intraday Consolidation Resistance
- 1.25699 – Intraday Consolidation Resistance
We almost have a marubozu equal to a weeks consolidation in Cable with the break of the 50D Moving Average early on followed by an ascending triangle getting triggered. Oscillator wise both daily and the 4H stochastic is overbought but with room still before the 1.27116 Daily high from April. For now we prefer a buy on dips approach looking for long tails in the hourly charts to trigger an entry, or a solid break and an hourly close above 1.27116 before going long. Note an intraday consolidation around the resistances and long hourly wicks may suggest appetite for the buy side has waned.
