Cable Update (GBPUSD)

Yes I think down as well

bayni w baynak balehon killon

Cable's rebound from 1.9363 extended further to as high as 1.9852 last week and sustained break of the mentioned falling trend in resistance indicates that fall from 2.0391 has already completed at 1.9363, supported above mentioned 1.9337 low as expected. From a short term angle, initial bias will remain on the upside this week as long as 1.9750 minor support holds. Further rally should be seen to 2.0029 resistance first and then 2.0391 resistance. On the downside, below 1.9750 will turn intraday outlook neutral and bring pull back. But downside should be contained by 1.9612 support and bring rally resumption.
In the bigger picture, down trend from 2.1161 have made a low at 1.9337. The corrective nature of the rise from 1.9337 to 2.0391 and fall from 2.0391 to 1.9363 suggests that price actions from 1.9337 are developing into sideway consolidation to whole fall from 2.1161. Though, the structure and length of this consolidation could either be in form of a three wave sideway consolidation or in form of five wave triangle pattern. But in either case, the current rise from 1.9363 should extend further to test 2.0391 resistance. Nevertheless upside of such consolidation should still be limited by 61.8% retracement of 2.1161 to 1.9337 at 2.0464. On the downside, below 1.9612 will turn focus back to 1.9337/63 support zone. Break of this support zone will indicate that decline from 2.1161 has resumed.
In the longer term picture, prior break of medium term rising channel at least indicate that rise from 1.8090 has already completed at 2.1161, so is the medium term up trend from 1.7047 probably. Hence, sustained break of 2.1161 is needed to confirm the whole up trend has resumed. Otherwise, another fall is still expected towards 61.8% retracement of 1.7047 to 2.1161 at 1.8619 after finishing the current consolidation from 1.9337.
Also, while cable is still staying above 55 months EMA (now at 1.8763) as well as the long term trend line support (now at 1.8808) there is no indication of the completion of up trend from 1.3680 (01 low) yet. However, bearish divergence in monthly MACD and RSI suggests that 2.1161 is at least a medium term top and more downside is in favor in medium term even if the long term up trend will resume eventually.

Trade smart and good luck

Tmac thats great stuff
and good news for technicals because next week doesnt hold much news.

so technical analysis should play out.

i look for a nice 150 pip drop from sunday open price, even tho the banks are close.

then we go up to 1.9900 or more.

Fed officials abandon Fedspeak to make clear interest rate unlikely to move lower.

http://biz.yahoo.com/ap/080525/fed_loud_and_clear.html

i hope ur right but it seems if we cross 9700 we r back in the bearish channel

anyway its interesting to see how cable will play out. plus we have one important piece of news related to house prices in UK that will have a big impact.

cable....
monday holiday

did anyone see double top on cable?probably looking down?

hi Rob ,BT , warta ,all

i think that we will see a bearish long legged doji for GU .

hey my brother hussein is everywhere

yeah i see a bearish long legs
btw load of green pips waiting the bearish camp this week in many currency

have a nice time all

probably looking down as u said but the problem is USD weakness

but MOE gave an interesting link which should supply USD with some strength.
cant wait to see how it plays out

Now that Picture is capitalism on steriods!!!

i hope so..

im on the train.

market not moving at all .....

not much the gap expected!!!

Salah and Warta out there so far..
any more Lebanese conquering this forums?

there r quite a few actually.
u can check them from the members list