Time to start building cable longs
For once in my life I’ve been patient and cable has pulled back to what I consider to be ‘good value’ levels. The pound has also some decent support levels nearby on the crosses with EUR/GBP resistance at .9050 and GBP/AUD support at 1.8050.
I’m hoping that 1.2350/1.2400 should start to build a base and I’ve started with a small long position. I don’t like running bigger positions over weekends, especially in sterling and especially with another Brexit deadline day looming on June 30th. If it breaks back below 1.22 I will forced out of the trade but a 200 pip risk on a small position compared to 800 pip potential on a bigger position; seems like a good proposal to me.
I am holding off on AUD/USD longs for now as AUD/JPY still looks like it could test levels closer to 70 before steadying.