Similar to the EUR/USD, mid-way through the London session Cable also sold off from psychological resistance 1.4800. This, as you can see, forced price to snap through bids at psychological support 1.4700, just missing H4 demand at 1.4603-1.4657 before turning higher into the close 1.4711.
Although this market is currently respecting 1.4700 as support, entering long from here might not be the best path to take. Our reasoning lies within the higher timeframe structure. Take note that price is hovering just above a weekly Quasimodo support at 1.4633, which, in our opinion, is crying out to be tested. Furthermore, notice that yesterday’s daily action painted an indecision candle at the underside of resistance coming in at 1.4746, which could just be enough to edge prices lower into the weekly level today.
For reasons given above, we have placed a pending buy order just above the aforementioned H4 demand at 1.4658 with a stop set at 1.4597. Should the order be filled, we’ll quickly liquidate some of the position at 1.4700, and look to trail the rest hiding behind supports as/if and when they form.
Although this market is currently respecting 1.4700 as support, entering long from here might not be the best path to take. Our reasoning lies within the higher timeframe structure. Take note that price is hovering just above a weekly Quasimodo support at 1.4633, which, in our opinion, is crying out to be tested. Furthermore, notice that yesterday’s daily action painted an indecision candle at the underside of resistance coming in at 1.4746, which could just be enough to edge prices lower into the weekly level today.
For reasons given above, we have placed a pending buy order just above the aforementioned H4 demand at 1.4658 with a stop set at 1.4597. Should the order be filled, we’ll quickly liquidate some of the position at 1.4700, and look to trail the rest hiding behind supports as/if and when they form.
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