Dailies giving the big picture . . . CABLE has been hammered for the last 2 years + and rightly so but it's been too heavily sold these last few months and looks to be out of kilter with USD and EUR both. CABLE shorts are being liquidated hence the recent move North helped by a Trump win. This move has gone against the prevailing DXY
strength, so EUR has weakened against the GBP accordingly. It's been riding too high in my opinion and time for a healthy correction if not reversal. From the lows of July 2015 to the highs of Oct 2016, there's plenty of room to pull back to at least the 38.2% where historical Support meets the 200SMA (green line). Below that and it's 50% pull back to the lower trend line
. I trade intraday, so break the picture down to the 30min and 5min and use exactly the same process of 100 and 200 SMA
, trend lines
, FIBS and 10/20 EMA
for timing. SHORTING on zig-zags
NB. PRICE is hovering on the Daily 100SMA so this really needs to break to give BEARS the upper hand . . . often breaks and then retests, so am watching just now.