A third negative weekly performance in succession was posted by cable last week – emphasising the end of the strong move higher during May & June. Each of the last 8 trading days have posted declines but although this means that signals for sentiment are oversold, the hugging of the lower end of a negative daily Keltner channel means that the focus remains on the downside.
So, allowing for some volatility and a reaction to the succession of down days, we look for the market to focus on a move towards 1.6833, an important 38% correction to the rise from this year's low.