Cable retests the day’s lows again, what next?

GBP/USD touches a low of 1.4059 on the day

The hourly chart tells a lot about what cable is trying to do right now. The pair is trying to break below the 27 March low, but so far buyers are managing to cling onto that support level rather well.

That’s been the story of the day, and this last 10 minutes. The pair tested a low of 1.4059, before now coming back up to 1.4068.

The break of the 200-hour MA (blue line) yesterday was crucial as it turns the near-term sentiment into a bearish one for the time being. But unless the pair firmly breaks below the 27 March low, it’s not a full blown break to the downside just yet.

In the bigger picture, the downside run in recent days was sparked after a failed move to retest the year’s highs. The rejection there doesn’t make for a pretty picture on a technical point of view for sterling bulls – at least for the near-term.