Cable failed to clear the technical hurdle @ 1.5940 level but doesn't mean a thing.
Cable could do anything right now.
Cable is the honey badger.
Like most traders, I seek to cash in on the pain and suffering of my peers.
I must understand what cards other traders are holding. Cable traders are net long at the highs. Cable is a little top heavy. This doesn't mean much.
There are also some traders that have started shorting cable and thus providing cable more fuel to rip.
Cable is vengeful. Cable will punish the clever.
So here's what you gotta do.
We have two layers of sell stops below. The first come in @ 1.5810 - 1.5760. There is an air pocket for 60ish pips and then more sell stops between 1.5699-1.5650. How do I know this? Magic.
You should ride these down if these down separately and only enter on the pip these levels are breached and cover at the bottom quickly. These sell stops will likely trigger in tandem with stops below GBPJPY between 1.9460-1.9420. So watch those GBPJPY levels.
There is an opportunity to get long for a swing trade trade after the last sell stops clear @ 1.5650ish.
Ok. Now for the upside stops. There are a bunch of buy stops above 1.60 through 1.6120. That's 120 pips of stops. Mayhem. If cable can clear 1.5940 and lurk around below 1.60 I'd pay close attention to sentiment and . If traders are shorting into cable or there is strong selling while maintaining support I'd get in and scale up as we approach 1.60 and out around 1.61+.