FXWW News/GBP crosses/Trade Ideas

Cable: Patience required for dip buyers

Apologies to those who I’ve confused between my postings here and in the chat-room; I will try and ensure that this doesn’t happen again.

I remain very bearish on the USD and my pair of choice for trading this view is still the cable. I was lucky enough to bail out of my medium-term longs at trend highs near 1.6250 (just for record) and am keen to buy back on dips. Remember the market always feels terrible on the way down but by Christmas I feel that sub-1.60 levels will have become a distant memory.

If the move from 1.6260 to 1.6010 was the first wave of a typical 3-wave retracement, then I would expect this second wave to run out of steam near 1.5870. This is where I will start buying (unless it’s in vertical collapse for some reason). The really strong technical support is at 1.5700/50 and that’s where I expect any falls to run into a brick wall of support.

I think it’s reasonable likely, given present momentum, that 1.6050/70 will cap in the short-term and that we will see a test of that first level at 1.5870, but as always, be sensible and wait and see what the market looks like when it gets to your level.

  1. yes sean, todays ind prod numbers were a shocker..got out of my eurgbp shorts and look to buy dips if it clears 0.8500ish…atleast till the cable turns around..im looking to buy a bit at 1.5870 but i have a feeling it might go a bit further…if people percieve thhis pattern on the cable as a H&S…we could target 650 in the classical sense..but prob stop at 700.

  2. Hi Sean, other than cable, what your view to GBP cross? like to AUD and NZD, both chart showing that heavy now, but I’m interest to buy low, just are caution that to pick the right level, it seen move too fast for daily, thanks

  3. Hi Jack, I’m staying bearish on USD so my preferred pair to trade is GBP/USD. Otherwise I like EUR/GBP lower over next 6/9 months but plenty of patience required

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