Cable has formed a very bullish hammer at 1.60; a level we suspected would be very supportive. Because of this, the pair looks like a buy again as we grind our way back towards 1.70 or higher. If we break below the bottom of the hammer, we should see support at 159 as well as 1.58 and many other minor areas as well.
Remember, this pair will move slowly, as both economies aren’t exactly favorites with traders around the world. Patience will be key.
