On the technical side, the Cable is trading inside an for about three weeks, printing a quintuple top along the way. It dropped 65 pips after the last failed attempt to break this resistance. There is a confluence with this and the of the swing low that preceded the triangle. We also have clear regular divergence; indicating underlying weakness and possible trend direction change from uptrend to downtrend. If the pair would break below and close below the lower of the triangle, I would go short. More conservative traders could wait for a successful retest of the before entering the trade. Monday we have the UK manufacturing pmi coming out, which will no doubt give an impulse to this pair.
The stop would go 30 pips above the flat top. TP1 lies just above the low of the swing low that precedes the triangle. TP2 lies just above the next key . See the chart for details. In terms of trade management, when TP1 is hit I would take profit on half of my position and roll my stop loss to breakeven, enjoying a risk free trade towards TP2.
There are +/- 400 pips to be made (depending on where it breaks to the downside) and the trade has a reward – risk ratio of +/-3.0!
Lots of news out today for the US, i believe USD weakness is around the corner although trying to get the American bulls to change direction is like trying to get someone of the crack-pipe.
If bad data today then GU is right on target for the 1.57500 ish level. Which is the level i've been looking for from the low 1.53
I've been scalping from the hits on the resistance area.. anyways.. good look folks !!