A Surprising Beacon of Stability With...>

CABLE TECHS: A Surprising Beacon of Stability

With many other currency pairs seeing large moves as oil fell sharply on

Tuesday, GBPUSD was largely stable but ebbed lower at the tail-end of the

session. Recovery efforts have been shallow and lacking impulse so far, capped

around the 1.2880 level, suggesting that the bearish trend remains intact while

to the downside the 61.8% retracement from 1.1841-1.4377 at 1.2810 has provided

short-term support. Thursday's low of 1.2724 remains the focus as does up

trendline support from the Aug lows at 1.2704. To reignite upside momentum,

bulls need to break above the 50% retracement of 1.2696-1.3258/the 100-dma at

1.2977/13, opening the Nov 7 high at 1.3175, ahead of down trendline resistance

off the June high at 1.3198. On the downside, bears look to break below the Nov

15 low to open the Oct 30 low at 1.2696 & ytd low at 1.2662.