CABLE

Weekly chart

Still in large triangle
approaching lower boundary
1.53 BUY level  (stop close by)

Daily chart


Daily in the MEGAPHONE formation
Failed break out
expect a test of lower boundary and possible fake out on downside
successful test for LONG trade

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?

Cable ..BIG picture

While the markets are treading water today time to look at the longer time frames of various instruments.

Cable daily chart

The head and shoulders formation pointed out in this post seems to still be valid and actually LOOKS better as the left shoulder was a complex one and the potential right shoulder shows some symmetry with the left now.  Obviously there is quite a distance to the neckline of the formation at around 1.53,  BUT ....we could see that level if the dollar index continues to strengthen and heads to 81.  The important thing to watch is how it reacts to support at 1.53.

short term ... 1 hour chart


Looks pretty self explanatory

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)

GBPUSD Cable revisited

CABLE WEEKLY CHART


Still in large triangle, tested the lower boundary and now rebounded.  Also breaking a down trend from 1.67 high in August 2011, so LONGER TERM could be ready to head to the upper boundary at approx 1.65

CABLE DAILY CHART


On the daily also looks like the bear case has weakened, and if we break 1.5930 to the upside 1.65 could be possible. Some more consolidation may be needed before this, but it looks like BUY on weakness..rather than SELL on strength.

4 HOUR CHART