Cable was looking bid yesterday

Carol Harmer Charmer Trading

SUPPORT: 1.2280 1.2250/45 1,.2199/85 1.2145 1.2125 1.2080/65 1.2040 1.1995

RESISTANCE: 1.2355 1.2385 1.2412/16 1.2475/85 1.2525 1.2565/75 1.2607 1.2674

So...Cable was looking bid yesterday as we said...and we posted a large rally upto 1.2416...we have eased a bit from these higher levels...but there is still an air of expectancy in this market and what with Brexit and Trump I feel that Cable will be the one to watch over the coming months...We cant ignore the double base...and we should then be able to push forward towards key resistance at 1.27.....Now this by no means says that the downtrend in Cable is over...We are firmly in a downtrend..BUT....for now there is more potential to trade higher than lower...and if we do trade lower it should give us a good opportunity to buy looking for a move higher...Now Iv picked 1.27 because the 23.6 fib is at 1.2694...We know markets can correct up 38% of a move lower/higher....but first obviously we have to overcome our first hurdle...Now if we do...and break 1.27 and stay above there we will be looking for the 38.2 retracement and this is at 1.3136..Obviously 1.30 and the round figureitus clan will be there looking to defend it...but still from 1.1980 t 1.30 is still a really decent correction....The trouble with cable is that you have to get traders to change their view...and since June the deal has been Cable is weak....possibly so...but weekly bases are things that us technical traders look for and act on...and this is why we are in a buy dip scenario currently....Fundamentals come later...and if I am brutal I see no reason why leaving the EU actually was a bad thing for our currency.....to be free from the shackles of the EU I think cannot be a bad thing...so the gut reaction of the past 6 months that Cable is a dead duck possibly wont be the case....Now...I am not the only one with the view both technically and fundamentally...else why did 1.1980 hold Sunday night/Monday morning...simple....the market at that point had based....Now to get further higher you need a change in sentient....The charts are already pointing us higher...we just need to take away the fear of the long and wrong brigade....Now what obviously will help also is the fact that the $ has had its own way for far too long...and again ..this is in need of a dire correction...trumps comments about a strong $ not being good for the country is nothing new...we have seen this time and time again with other countries....notably the JPY a few years ago.....when these 2 reasons for trading collide....which is what I think is happening at the moment....then it is a gift from the universe above and we do not ignore it.....for today PP s PP 12280 R1 12552 R2 12658 R3 12900 S1 12144 S2 11902 S3 11766....Now because of the large rally of yesterday these pivots are way out of line and will be differet story tomorrow...but the PP is the one we watch...because it does tie in with a good support level...so all eyes on 1.2280 and if we hold above here....we buy !!!

Interested in GBPUSD technicals? Check out the key levels

1. R3 1.2935
2. R2 1.2676
3. R1 1.2536
PP 1.2277
1. S1 1.2137
2. S2 1.1878
3. S3 1.1738

Author

Carol Harmer

Charmer Trading

Carol Harmer has over 39 years experience of analysing and trading the world's markets and is undoubtedly one of the most respected technical trader in the world today.

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