Cable’s daily closing above 1.3315 (23.6% Fibo retracement of 1.5019-1.2789) on Tuesday adds credence to the view that a short-term bottom has been made at 1.2789 and the technical correction is likely to continue, but reckon the resistance at 1.3363 (50% Fibo expansion level of Nov 2007 high – Jan 2009 low – July 2015 high) would remain intact ahead of tomorrow’s Bank of England (BOE) rate decision.
A day end closing above 1.3363 would open doors for 1.3641 (38.2% of 1.5019-1.2789).
On the lower side, only a daily closing below 1.3055 (July 16 low) would signal the corrective rally has ended.
A day end closing above 1.3363 would open doors for 1.3641 (38.2% of 1.5019-1.2789).
On the lower side, only a daily closing below 1.3055 (July 16 low) would signal the corrective rally has ended.
