Look back over the past, with its changing empires that rose and fell, and you can foresee the future too.

— Marcus Aurelius


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Wednesday, February 29, 2012

Cable consolidation over? or topping?

Cable (GBPUSD) seems to have consolidated it's move up from the lows at  1.53

Now at resistance near the 200 day ma, and horizontal resistance.  A significant break above clears way to 1.6140 and beyond as per previous post  here

Looking at the daily chart

This shows the horizontal resistance levels clearly
Also the recent corrective action could be an Elliott wave ABC correction.
Move from Jan low (1.5256) to Feb high (1.5898) = 642 pips
 if next move is equal to this 1.5936 + 642 = 1.6578 (ie close to 1.66)

4 hour chart

Pull back possible before heading higher..
Can be short at 1.5930 with a tight stop
Or wait for pullback and stop below 1.58
If break out higher 1.62 target off the 4 hour chart ( close to 1.6140 target off daily chart above)

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