Cable: Adding to long position
The signs from the crosses such as GBP/AUD and EUR/GBP are bullish for the pound and I am starting to ramp up my cable position.
This is always the most dangerous time when it comes to position building, as if I get the timing wrong then it’s easy to get stopped out.
I have started to add at present levels near 1.2545 and will continue to do so if we start making fresh highs. I don’t buy on breaks by the way, I usually wait for the first pullback after the new highs are made.
I’m hoping that yesterdays low at 1.2460 becomes the first marker and stronger support should emerge again at 1.2350-1.2400.
My target for this leg is 1.3200 which I think is achievable.