GBP/USD: Buy on dips, people are underestimating Cable
|GBP/USD
Give it its due...we have broken 1.2529 and now looks set to reach the Feb yearly high of 1.2570...I think Cable will come under pressure at this point...but I also think seriously that Cable is a buy on dips.. Yes.. we are overbought. But we can go sideways to ease that...what we really want to see s a pullback to 1.2445/40 area and that I think will encourage buyers back into the market.
People are underestimating Cable….we have had a seriously drop to 1.1980/50 and have double based at this area on the weekly charts...this cannot be ignored...even a minimum target would be 1.2706 which is the yearly high then 1.2775...but...the important point is that if we do break 1.2775 the measured target from the base formation is 1.36.
Now 1.3600 may seem really high...but memories are short.. in June of last year traders were saying and thinking how low was 1.36/1.35…this s because we lost from 1.50….so please...do not think Cable cannot make these higher levels...because it ca...and I think it will...Now not overnight...or even in a week...but if weakness is seen in Cable please believe me that there are longer term traders/hedge funds/institutions that are just ready and waiting to hoover up bargains… I am good...but I am not the only on seeing
this….This is where my banking experience comes in...and the investment side of banks are advised by people like me ( not me now) but people like me to wait and buy any sort of pullback.
1.2445/40 would be a good level to go in and buy and I know yo cannot act like a bank trader...but even if it breaks here we will still see buyers coming in and defending any sort of weakness. So please be prepared.
GBPUSD Current Trading Positions
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