Long GBP trade I talked about yesterday here Quick look: Meanwhile Cable is having a good run has run its course.
Break above 1.4284 was a bullish sign, and looking at the same i planned to jump into longs. Trend now will be decided by today’s daily closing. Let us have a look at the daily chart
Cable chewed through offers around 1.4330 (23.6% of 1.5930-1.3835) and is now trading at 1.4434 levels.
- If the bird closes above the black trend line drawn by joining Dec 2 low and Dec 22 low and extended further would open doors for further rise to 1.4560-1.46 levels.
- Note, there may be a dip in the first half of next week to black trend line. However, as long as the daily closing is above black trend line the spot is likely to test 1.4560-1.46 levels. A rally on MOnday would mean 1.46, while rally by next weekend would mean 1.4550-1.4560.
Bears are likely to come only below black trend line (daily closing basis). If prices breach blue trend line seen below black trend line would indicate sharp sell-off