ICmarkets

Our take on Cable's recent movements...

FX:GBPUSD   British Pound / U.S. Dollar
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Weekly timeframe perspective: The weekly timeframe shows that not only is the GBP in a freakishly steep downtrend at the moment, but price is also seen selling off from just below a recently broken weekly Quasimodo support (now resistance) line coming in at 1.5007. Therefore, for anyone considering buying this pair medium/long-term may want to consider the above before doing so.

Daily timeframe perspective: From a technical standpoint, we have barely seen any change on this timeframe for quite some time now. The key thing (in our opinion) to take away from this chart is that further selling will/can only take place on the weekly timeframe once the daily demand zone at 1.4643-1.4823 is taken out.

4hr timeframe perspective: The GBP/USD pair fell during the course of yesterday’s sessions, completely wiping out both the 1.4800 level, and the 4hr demand area seen at 1.4721-1.4767. This consequently resulted in price testing the 4hr Quasimodo support level seen just below this demand at 1.4698.

From where we’re standing, buying from this 4hr Quasimodo is not something we’d stamp high probability. Granted, by entering long here you are effectively also buying on the round number 1.4700, which, as you can probably see, is neatly tucked deep within a daily demand area – fantastic! Now switch over to the weekly scale, not so fantastic - strong downtrend, resistive pressure being seen from a weekly Quasimodo resistance level (see above), and this is before we even consider the resistance that may form from the recently broken 4hr demand area just above it at 1.4721-1.4767! With this in mind, there will be no buying seen from our desks today.

With regards to selling, our team has come to a general consensus that shorts will only be permitted when/if price consumes the aforementioned daily demand area. That way, we can be pretty confident the down trend on this pair is likely to resume.

Current buy/sell orders:

• Buy orders: Flat (Predicative stop-loss orders seen at: N/A).

• Sell orders: Flat (Predicative stop-loss orders seen at: N/A).
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