GBP crosses/Technical Analysis

Cable: Buying big dips is favoured strategy

Recent reports from the interbank market and from prime brokers suggests that the bigger speculative players are taking a negative view of GBP whereas real money and asset managers are tending to be buyers. That says to me that the speculators will drive it lower in short-term but on a more medium term basis, the bulls will eventually hold sway.

Cable is never the best pair to trade from a technical standpoint but we should note the big levels nonetheless, with a 38.2% retracement level at 1.5995 looking like an obvious target just beside the always important round number at 1.6000.  I think we may see a test of this level in coming sessions and my bias at the moment is to buy dips.

  1. Hi Jordan, I don’t think there is any one theory which describes everything and can always be followed but in a very macro sense yes I would say that most big markets are cyclical

  2. I’m following some blogs for prediction of cycles. We might see monthly low in stock market in couple days. If they’re correct, buying dips in Cable would be great.

  3. Sean,

    As far as the cable is concerned. I am not going to buy or sell it unless this range 1.6100-1.6250 breaks on either side. yesterday I got trapped in the 40 pip sudden spike in 10 mins.

  4. Good morning Jordan,

    Would have a link to your blogs on cycles? Just want to have a look at their reasonning. I do expect a bearish October btw.

  5. Sean,

    For my forex culture, how could you explain that : “Cable is never the best pair to trade from a technical standpoint” ?

  6. I’ve been a cable trader since 1987 and it has always been seen as the pair which mostly does not follow technical rules. This is probably understandable in that it has traded close to 1.60 for most of that 27 years. Down a lot, up a lot, but always back to 160ish. I guess that’s why it doesn’t obey tech rules, it’s a fixed price 🙂

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