On the hourly chart (not shown), there is positive divergence between price and RSI. In addition, the last closed hourly candle was a hammer. Both of those hint at a rally. Resistance is at 1.6197, 1.6235 (.382 retracement of the move down from yesterday), and 1.6267 (price high and 50% retracement). The hammer low was 1.6136. If Cable closes below that, it invalidates the hammer. At that point, I'd look for 1.6000.
© Dianne Fecteau, 2011. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.
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