Cable retreats as year-end reversal sets in
Cable traded higher for most of December, but during the holidays we saw some reversal, which is very normal when markets slow down. At the beginning of the new year, we can expect more choppy price action, with moves in both directions, before the market potentially stabilizes and maybe even resumes higher later on. From an Elliott wave perspective, I would not be surprised to see a deeper near term retracement within the ongoing A-B-C decline. The first support comes in around 1.3357, followed by the 1.3300 area, which is an interesting zone as it marks the post Bank of England rate cut low.
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Author
Gregor Horvat
Wavetraders
Experience Grega is based in Slovenia and has been in the Forex market since 2003.
