Although a new 2 month low was posted by Cable in early trading yesterday, Monday’s indecisive price action was followed by profit taking. This bounce created a Bullish Hammer on daily candle charts which, especially ahead of a key 50% correction point, leaves immediate sentiment as positive.
The bounce is likely to be temporary, especially while the 13 day average is intact, but sentiment is assessed as positive with potential to 1.6825, 1.6847 and 1.6866.