Cable /EURGBP

Cable has been relatively strong recently both vs the € and the US$, why? Maybe with the continuing EURO area problems, and a perception that the UK has a more flexible economy and an independent Central Bank, there may be (ironically) a rush to "safety" !

Looking at the charts

Cable daily close up


Still trading within what looks like a BROADENING WEDGE or MEGAPHONE
Key level seems to be 1.61 (trading at 1.6060 at time of writing)
strong resistance just above between 1.61 and 1.62

CABLE daily

Big picture could still be a large Head and Shoulders formation, a break out above 1.61 probably invalidates this and resistance would then be at 1.65

EURO/GBP


Hovering above key support , break through or rally?

EURO GBP short term bottom or near?

Haven't looked at EURGBP for a while (due to personal circumstances been out for a while), but we broke down through 0.8455, but we have hit the lower descending trend line at around 0.8100 and bounced.  This looks like could be key, though we are still in a DOWN TREND, may be a warning that EURO may have a period of strength vs Pound (which ties in with the previous post on cable).

Obviously a clear break below 0.81 and we could test as low as 0.78

EURGBP

Well this went further than I thought..BUT like the AUDUSD chart from 23/02/10 AUDUSD  the negative divergence set up is looking better with a new high and RSI flat.  And the STOP for a short is close by so RISK/REWARD  looks good as well.

GBPUSD looks like it is close to target so with Greece and other countries weighing on the €, maybe £ will start to outperform again vs Euro.

Still looking at...EURGBP

EURGBP... with this rally looking to get short eurgbp chart Thursday Feb 11th

EURGBP as of today..

X ABCD on the chart is a possible BEARISH GARTLEY PATTERN