Using 3 moving averages and plotting support and resistance
can tell a lot about the "state" of price. We see our moving averages bullish
from early July, peak in the middle of August and since then consolidate. There is an important long-term support/resistance
line in the vicinity of 1.4650 which is where price lies now. The moving averages are now bearish
, and we are looking for the support/resistance
line to break.
On Tuesday, the Swiss report trade balance numbers where they have beaten the forecasted number the last five times. A beat is bullish
for the CHF. Also on Tuesday BOE Governor Carney speaks and I anticipate he will work to weaken the GBP with his speech.
The British report retail sales numbers on Thursday, which have been weak recently as well.
Sea Lion Capital Management LLC