Cable chart via Lloyds:
- We are seeing more of the two prices of the action now that we are back in the middle of the 1.30-1.36 range.
- Our bias is that the bounce from 1.30 is the corrective to move through to 1.30 1.28, potentially down to 1.25. These must define the bottom of a medium-term perspective.
- If this is the case, any further upside gains should be limited to the 1.34-1.35 area. Well through this area would question these perspectives and risk another test of the 1.37-1.39 key medium-term resistance zone.
- In the Long term, our studies suggest that the downward trend that began in 2007 at 2.1160 is in its last phase. Recent price action increases the odds of 1.1490 has been one of the main long-term low. Even so, there remains a risk of a return to the low 1.20 s and, possibly, a re-test of said spike low in the next two years.