Richard Perry
Independent Analyst
GBP/USD
It was interesting to see that whilst EUR/USD formed a decisive negative candle, it was a doji (open and close at the same level) for Cable yesterday. A doji denotes uncertainty. Over recent sessions we have been discussing that Sterling would be settling down after its mid-October huge volatility. This stabilisation seems to be continuing, with another small (c. 60 pips) daily range and the Average True Range continuing to plummet (now down around 90 pips).A market on the drift. This is reflected in the momentum indicators which have rolled over and are slipping back, but with little real purpose. The market has formed a range $1.2785/$1.3010 and within that there seems to be a mid-range pivot band $1.2900/$1.2925 as hourly RSI develops ranging characteristics (oscillating between 30/70). Trading under this pivot there is a mild negative bias, with initial support at $1.2855.
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