Cable is developing a wedge

As North American traders stepped in today, the Cable looked set to challenge the 200dma and recent highs at 1.3830, then the pair was slammed down into North American trade. This keeps the 1.3830-1.3850 levels as critical resistance. But the ascending trend line formed from September 30th has come back into view and a move below the 1.3700 level would be very disappointing for the pair. Also take note, since the end of May the pair has been putting in lower highs which is a risk to any bullish view near term.

Blake Morrow