Cable bounces after touching multiyear wedge support line
|Cable broke down sharply on Sunday after British finance minister Kwasi Kwarteng's announced tax cuts on energies. Plan is more money for households to expand the supply side of the economy, but investors were pessimistic about that, at least for the short-term period until BoE stepped in and announced a temporary QE to stabilize markets. It was a sharp drop on cable, a real capitulation before market turned back up.
Notice that after such nice 5 subwave recovery on GBPUSD from 1.0532, it's time to zoom out a bit. Pair reaches potential temporary resistance up here, which will probably be broken next set-back. Or broken now and next set-back stops at that falling trendline.
On a weekly chart, we are looking for a wedge with price now trading at new lows, so we can be in late stages of a higher degree bear market.
Get Full Access To Our Premium Analysis For 14 Days. Click here!
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.