Cable Update (GBPUSD)

Made a good return last night on that news breakout. It is such a long up run!! I keep chanting to my self, what what the market IS doing, not what it SHOULD do!

I wonder what the MPC Official Bank Rate Votes will bring tomorrow night. That usually causes some pretty big moves.

Well if price closes below the 3248 bull support then it is a bull failure to reach the 337 bear support.

This will cause attempts the break the lower bull supports.

If the bears cannot break this 3248 support then another support is required to break the 337.

If we look at the daily we see the bulls found support and tugged the average to a double top. Consolidation here will see the average make the high.

Remember to compare averages to averages and prices to prices. Not price to average, this is meaningless other than for finding support levels.

On the 4 hour chart we see the average should make the HH today but look at the next top one. If it breaks that we are in a very interesting wide open area.

We are currently slightly above your 1.32856 Nala66 which is interesting. I am seeing the next resistance as 1.34437 from back in August 2016. If we get above that the next resistance is 1.41000 from June 2016.

what part of bullish did we not understand?

Can any professional traders here give us accurate signals ??
Nala66
Do u mean that the price should touch 1.3248?? to test it

Hi Zedan,

By testing that value, Nala66 means that the price has recently gone through what was a resistance. In the graph I drew below I drew the line as 1.32244 but same thing. You can see that on the 2nd of August the price bounced off that line and couldn't get through it. Last night though the price went up through that line. To make sure the price has truly broken through the barrier, ideally you want to see the price go through (which it has) then come back down and bounce off the old resistance line before continuing to rise. This shows that what was a resistance line has now become a support line. The re-test of the line confirms the continuation of the trend, as opposed to a false break out where the price crosses the line as it has, but then turns around and heads back down.

So that is what folks who trade with the trend are waiting for. To see if the upward trend will continue. If it does there is not alot of resistance lines above it so without anything concrete to stop it the price should drift upwards until something causes it to do otherwise.

That's the idea anyway!

I can see that Pound just broke 1.33 for the first time in a year. Actually it was this same day a year ago.
This break has come in mid-Asian session with little fanfare.

I will be buying dips until this changes, because this little break paves the way for another 1000 pips higher.

GU looks like 4h channel - on lower TF will look for sell set up back to bottom of channel and then will look for either buy up again or hold for break out below.. see attachment for trade idea.. Happy trading!!

Of course, you may be right.. however just a caution that you may be buying at the top of a channel (if this holds-- see previous post) and soon to come into a pretty strong Weekly Downtrend, that looks to have a good possibility of one more move down. Just something to ponder, from a 'wave' perspective point of view.

nice chart.. what is that platform.. looks familiar but i can't place it.. not MT4?? very cool.. DH

Defintely good old Metatrader 4

And if you have any doubts about JPY analysis, check this

Thanks AFL for that explanation...go the Crows

No Zelan it does not have to test support though sometimes it does. As far as accuracy goes I cannot be more accurate than exactly to the pip each time.

If you look at my 1 hour chart you will see in a trend every old bull support is broken only if the bears find support.

My notion of support is different from what most people, if not all, post here otherwise there would be little point me posting at all. A support later becomes a resistance.

By plotting the 1 hour chart like this, it gives me a good picture of what the price action is trying to achieve so I can then trade this at the 5min or 1min chart times.

Now if the price does come back and breaks the support then this section of a trend is ended and we start to consider the opposite direction.

On the 1 hour chart you can see my last bull support (green) and about five hours later the bears crashed through it. This is not a break because they couldn't close below it, it is the close that counts. At the same time watch the average because this was an attempt to stop the average climbing.

The price action rarely moves directly from one level to the other without some form of pullback so I take my trades in 20 pip bites, the yellow box you see on my chart is this 20 pips (22 actually to allow for spreads). Though I don't post my trades you can be sure I get at least one of these trades every single day. I don't care how many pips the price may, or may not, move overall all I want is my minimum daily 20. Every time i complete 20 of these 20's i.e. 400 pips, I give myself a $100 a day pay rise. Works for me.....

Targeting 1.3380 as quarterly target, closing below 1.3350 will indicate bull lack of strength next resistance which is important will be 1.350 region

Hourly looks exhausted and Daily is pretty much overbought, but high can still go higher though...

135 then we talk ..

Yeah it could well be the case for the continuation upswing