I have to start by admitting that the market does not always moe in ways which would make sense to the average logical person. In fact it often moves exactly opposite what a logical person would expect based on the fundamentals.
Having said that, I will still try to look at things as though they were logical (!?!). There have been some good economic releases out of GB lately, also the prospect of an upcoming interest rate increase. Bernanke is going to speak this week and, frankly, the effect of his opening his mouth seems to be to depress the dollar. The pound/yen has been going up nicely and cable having gone up more yesterday than the ATR (just how much is not important) can be considered to be consolidating. While it may not be going up at the moment, it is also not going down significantly (it is only 32 pips off its high).
Based on all of this is would not be unreasonable for a logical person to think that cable may be planning on continuing upward. It is just a pity that the market is not always logical. For now, though, I am holding onto my cable long.
Having said that, I will still try to look at things as though they were logical (!?!). There have been some good economic releases out of GB lately, also the prospect of an upcoming interest rate increase. Bernanke is going to speak this week and, frankly, the effect of his opening his mouth seems to be to depress the dollar. The pound/yen has been going up nicely and cable having gone up more yesterday than the ATR (just how much is not important) can be considered to be consolidating. While it may not be going up at the moment, it is also not going down significantly (it is only 32 pips off its high).
Based on all of this is would not be unreasonable for a logical person to think that cable may be planning on continuing upward. It is just a pity that the market is not always logical. For now, though, I am holding onto my cable long.