Cable

On monthly chart, we are in the cloud, in september rates were closed to reach the EMA 200 @ 1.7380. If

The 2 sen crossed last august, the span dropped too to the rates, and it broke the rates in September.
Next important support is seeing at the bottom of the cloud arround 1.7040. This level is also
the bottom of November 2005.
So currently the 2 sen have crossed, the span is working under the rates but above the cloud, and as we said above we are in the cloud.
On EMA we are between the EMA 50 and 200, MACD crossed last month and RSI too, it s bearsih.
Even if we are bullish on EURUSD, I think Cable is going to be very difficult to forecast over the coming month. The same crisis is hitting both England and the USA. I am more worried about england than the States, in fact England is driving by financial services, and today it s difficult to forecast the end of the crisis.
By end of crisis, I think banks are safe now with all the measures that politics made. I think we are coming in a huge recession, as banks are going to improve their liquidity ratio and their equity capital than lend money to small firms and main street people, firms are going to lay off, consumer spending will continue to decline as consumer credit will stay low..... and the vicious circle is turning.



In weekly chart everything is bear on the ichimoku, and all the moving average is showing downside movement.
MACD have crossed in early January as cable made is top last november. From January til July cable was ranging, we can sse on monthly chart the 7 doji.
RSI 39 is becoming oversold on weekly chart.

On daily it s the same than in weekly all indicators are bearish, we will not open a position when rates are going to cross our point. We are going to be very vigilent over the coming weeks.