Cable Update (GBPUSD)

The age old question are we rounding or stalling?

A) Rounding

B) Stalling

My vote is A

You forgot this:

C) Today is Friday.

I'm "C"

I'll take that as an A as well

lol, I am good.

So Cesarnc, are you thinking that because we haven't continued downwards we may be in the process of heading back up (GBP/USD)?

Based on markets indecision in recent times, i feel a close near the daily pivot at 9560 area is called for over the weekend.

I am taking your word and getting long- lol

with tight stop.

long @ 9500

yeah you are right on that one, sorry it took so long to respond, had to go to school.

Not exactly. I'm taking the dollar perspective instead of Cable. Although Cable wasn't in tandem with EUR and YEN, the three of them are exactly at the same level as of jan 03 or 04.

If you remember, this first week of the year was market by sharp dollar bullish trading (Cable down, Euro down, USDJPY up)

After that, Cable was boosted up due to rate hike and Yen ranged furiously due to pre-G7 speculation. Note that during this period, the dollar index remained sideways.

Euro was a good marker of what was going on with dollar, because Euro wasn't being under heavy speculation and shows much less volatility during Yen speculation period.

Now this week, dollar index was pulled down hard from its ranging level (84.50), closing yesterday at 84.07 and begging for some air today.

With this dollar breakout I think the general bias now is dollar weaker across the board (specially because of the smell of ECB rate hike shortly).

That will be verified with a sharp reversal (from here or below, depending on further majors/USD retracement on Monday). I'll be using Euro as the marker again, at the vicinities of 1.3200, not breaking 1.3100 downwards (the upper level of its range since early Jan)

Have in mind that on next Wed we are having BOE minutes and a possible (likely?) BOJ rate hike. Market is reacting furiously when interest rate is being talked about.

Couple of piece of info follows....

[NIKKEI ARTICLE SUGGESTS MORE JPY WEAKNESS] A Nikkei online article highlights a pair of factors which are likely to keep the Jpy soft, even should the BoJ hike rates on Feb 21. Relative yield spreads will remain hugely against the Jpy while the BoJ is holding yields down by continuing its JGB buying, despite ending quantitative easing

On CABLE
The strength of negative sentiment towards the [POUND] has just been tested, an investor account said to have sold around half a yard of [EUR/GBP] to follow on from real money sales earlier - with only a fleeting impact on the price. A US investment bank has been a bidder during the day but has left the cross shy of stops above 0.6750. An east European central bank has been a seller of Gbp/Jpy, bringing stops under 231.90 into the frame, while Cable's losses have halted just shy of stops under 1.9450. Mon's Hometrack and Rightmove HPI's are expected to show the continuing impact of the BoE's latest hikes, but the market will be concentrating on Wed's minutes of the Feb MPC. Anything which shows less than a 7-2 majority in favour of holding rates could see a market short Gbp squeezed

My vote is a "qualified" A - No news of any significance on Monday except very early [just after midnight GMT] mortgage lending info - UKmarket still strong so may be a little boost for sterling. On Tuesday quite a bit of UK mortgage and lending data. I think a ranging day monday between today's highs and lows with a small break to the upside late afternoon to position for Tuesday's data, continuing up if the data is reasonably positive.
GBP/Usd dollar weakness appears to have been as a result of eur/sterling plummetting out of recent ranges then getting back into kilter which is almost achieved.

Monny a mickle macks a muckle!!

Now we'll see if it breaks out to 9550 or if it stays at around 9510. I think that on monday or tuesday i will set my stop to 9505 because that seems to be making a pretty strong resistance line right now, which will turn into a support line later.

Nice weekend everybody!
Nice holiday, US-ers
Nice Carnival here

price is making lower highs but rsi is making higer highs.thats a clue that a possible long is around the corner

Cable is opening at far higher price than Fri close. Good luck to everyone this week.

Nothing on my charts are showing the move up, could anyone tell me where its at right now?

Nevermind, there she goes. haha Now for the resistance to break.

Honestly... watch out! there is no fundamental reason to bet for a profitable long on CABLE (unless you are a scalper)...

How are you all? Could you guys let me know , how you calculate pivots for Sunday-Monday after a weekend? Best to take previous Friday's H-L-C ?
Happy trading.
Thanking you all for advice and insight in advance
Banda

Ehh woke up so early?

HEHEHE.