Cable Update (GBPUSD)

Looks like a perfect pennant to me.

Yes, however the same scenario goes back to the 1st of December on the daily. This is where I get the top @ 9722. My plan, and please verify this to suit yourself, is as follows. If I can get price action on the hourly to initiate a long I will do so with a stop just under this mornings low. (9548) I will set target #1 @ 9615. At that point I will close 1/2 of my position, move stop on remaining to 9580 and target 9695 with remaining open position.

Primate, my alternate if I get short price action will closely follow your observation. First obstacle down is just above 9500 and then could see the low 9400's quite easily. I am in a wait and see right now to give the chart a chance to speak.

I'm not too familiar with the patterns, but we could also have some sort of gartley, three drives, XABCD or whatever....in essence: big rush upwards, some correction in a few purging moves, then up up and away for continuation if it works out

Unless of course there's a sign of reversal at the highs, then it's back to the same game...

Anyone with pattern background?

I have studied patterns quite extensively. However, I have found they are very subjective just like everything else in this business. If we use "The Book" figures on the daily Bull Flag we get a target somewhere north of 2.000. I certainly would not want to suggest this will happen, but using the strict technical interpretation, that is what I get. I think a more realistic scenario is ranging inside the flag (9400/9720) until next week.

Sounds reasonable... I've been trading within this channel the whole time. However, abnormal behavior on DEC 22 and today confused me and costed me a buck. So far, there's nothing showing that price will break down from current 9566. Besides, indicators and previous behavior shows an up move to the 9590 - 9600 area, at least.

I was wondering whether or not this up move would break up to 9700 area soon... But 200 pips sounds way too optmistic for a new year's eve...

Thank you very much for your valuable comments... I appreciate that.

Hi guys - ALthough I can see where everyone is coming from as far as patterns are concerned, I really have a problem trading on these classic patterns as the main ingredient in constructing them(volume) is unavailable to us. Not to say that I cant use them to put together a possible plan as well as contributing to the overall view of where the market may be heading, but if you really look for alot of these classic patterns, you will find they are everywhere and most of them fail or continue under many complex variations. I agree that they shouldn't be ignored but I have found, and this is by no means a definitive statement rather an opinion based on my history, that a grasp of fundamentals, coupled with boring S&R, pivots, channels, momentum divergence, and my personal favorite for trend continuation - positive and negative reversals, keeps me out of trouble and on the right side of the trade most of the time. Nevertheless, I am by no means an expert and even if I was I am never too complacent to learn from your views and I appreciate and respect every single one of them.

Today will also be the first close above the daily PP since 12/20/06.

but if you really look for alot of these classic patterns, you will find they are everywhere and most of them fail or continue under many complex variations. Quote: Leugimp

I totally agree with you. You will notice I mentioned they are very subjective. The way I will discover patterns is when drawing support and resistance lines. I would offer that this is actually what forms the pattern. Although I don't trade the pattern as such, I would feel amiss to ignore the possible implications of them.

WOWWW, what's causing this move?

Hmm not sure but moved fast it also almost took my us/jpy out

Now we're talking

I like this move, especially off hours, I will try to ride it up to yesterdays high on the back of dynamic pivot points.

According to the DOW wire, this was the Asian Markets reaction to the UAE selloff of USD for Euro.

Well, my plan got kicked into action. We will see how it progresses.

its just the retracement , nothing has to cause retracement, maybe some peeps taking profits! A pair almost never sits down by its low or high for the day especially the GBP she is a beast she likes to take out SLs left and right from all of the newbies lmao .. that would be me hehe thank god she didnt get me today

Yeah... I noticed a spike on USDJPY like 2 min before Cable... Was wondering what was going on during those 2 min

Here's the blurb...

[ASIAN OPEN] The o/n mkt was dominated by two impt pieces of news which resulted in offsetting reactions for the Usd. The Usd was sold off when the UAE announced that they plan to sell the Usd and buy Euros which led to the EUR/USD to an o/n high of 1.3178. See page

It's worth posting, I guess

[USD/JPY] fell from an earlier high of 119.22 in Asia to an overnight low of 118.28 after the Jiji news report saying that the BOJ is likely to discuss raising interest rates by 25 basis points at their Jan 17-18 meeting. Market players expect the BOJ to raise rates one time before the end of the fiscal year in Mar 2007. The Usd was also hit hard by diversification news out of the UAE who said that they plan to sell Usd and buy Euros. Technically, the overnight low was right around the 76.4% retracement of the move from 121.40 to 109.00. Buying orders at 118.20/30 by investor types will provide support while selling orders at 119.00 by leveraged accounts and exporters will cap the upside.

Well that was a great 15 min reaction now back in the toilet. LOL