FXWW News/GBP crosses/Technical Analysis

Cable technicals: Look for minimum retracement to 1.5365

I’m bullish as you know and I think the down-move to 1.5133 gave bulls an excellent opportunity to gather some cheap ones before the big move higher. But, I’ve been wrong plenty of times before and maybe we are currently seeing the beginning of a big USD move higher (it’s not as if the Fed’s printed squizillions of extras, or?).

Even if I am wrong again, we should at least see the cable retrace towards its 38.2% of it’s most recent fall (see chart).

  1. Hi Sean,
    I have been chopped a bit in trying to build a GBP position and now think we may be basing and am now looking to add on dips. What would constitute a decent dip in GBPUSD?

    On the Fed’s QE, there is a counter argument of course in that the private sector is extinguishing dollars just as fast as the Fed builds its balance sheet – maybe even faster at times of severe risk aversion. Without that balance sheet expansion, massive deflation and debt squeeze would be certain – sending the dollar to the moon and devastating bank capital (many times over).

  2. Hi Droid, I’ll put it another way, I think it goes up and I think you need to have your stop now below 15120. Really impossible to be sure on ultra short term moves but it’s trading pretty steadily at moment so longs preferred in my biased opinion near 15250

  3. Thanks Sean. The magic answer? Best to follow the sage advice – “Seek those who search for truth. Avoid those who find it.” 😛 Look fwd to our drinks’ night.

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