I continue to believe that near term rallies will be seen as a chance to sell as the bearish medium term trend continue. Have we now started to see the latest rally running out of steam? A mildly positive candle has formed and the daily chart shows the momentum indicators rising, but perhaps once more are now beginning to decelerate. The hourly chart shows that the upside target from the breakout above $1.4170 has been achieved but since doing so yesterday morning, the chart has begun to show corrective signs. The overnight bounce looks to be rolling over again, whilst the hourly RSI and MACD lines are falling away. There is a near term recovery uptrend that the rising 55 hour moving average is flanking at $1.4230 and if this is broken then I would expect a retest of yesterday’s low at $1.4195 and also the previous pivot at $1.4170. Resistance is at $1.4275 and then more importantly at $1.4350. Cable looks to be close to its next sell signal.
Chart – GBP/USD
