Cable: Still in middle of it’s 4-year wedge
Hard to believe that the crazy currency pair which I started trading in 1986, and which used to see 500/600 pip daily moves, has been stuck in an ever-narrowing wedge formation for exactly 4 years now.
I have absolutely no idea which way it will go but I’m confident in predicting that 2013 will be the break out year and we will either see 1.35 or 1.85! The edges of the wedge currently sit near 1.5650/1.6450 and whilst I’m currently short of cable (only because we got near the top) I’m ready and willing to go aggressively either way once we get the break.
One pair which seems to be giving a strong GBP buy signal is GBP/JPY, so perhaps this is a signal that the break when it comes will be a bullish one? I’m not sure but lets hope we get some volatility at least in 2013!