FXWW News/GBP crosses/Trade Ideas

Cable: I’m sincerely hoping that was the base!

The neckline on the 1.5000 double bottom was marginally breached but cable was unable to break below 1.5130 and I’m hoping that an interim base is now in place. I’m still long with an average entry near current levels and I’ll keep my stop at 1.5100 for now, as if it goes there again then I’m well and truly wrong.

The EUR/GBP, EUR/USD dynamic is very interesting; the cross came in for some heavy selling yesterday and the .8600 resistance continues to look imperious. On the other hand, Sovereign buyers soaked up the EUR/USD element meaning that all of the pressure was exerted onto the cable. The price action was certainly impressive.

Any chance Mr Carney will say that cable would be better served at 1.75 🙂

I’ll be back in a few hours, hoping it stays quiet today in Asia.

  1. Hi Sean,
    I remembered there was one article that you wrote and it is about trend changing. Looking at cable, there were some mix news on ISM PMI and also initial jobless claims. Both figures were not that well and to top it UK had a good reading for its services PMI. Of course, pound jumped on it and raises from the ashes. Now, given the situation if cable only spike up a little then it is of no contest that we are seeing a continuous downtrend. However, cable held the line and even breached 15300 and is hovering between 15250 and 15300. IMHO we should be seeing a trend change but the NFP tomorrow is clouding the view at the moment. Your thoughts?

  2. I hope you are right Danny but as you say we need to get the NFP lottery out of the way before the real trading returns. I think the mkt has been looking for a USD trend in a cross-driven mkt and this is a mistake IMHO

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