Short Sell @ 1.29, Long Term Buy @1.25 - Target 1.40?

Looking at the weekly chart, Cable has been forming a triangle/wedge pattern, which could also be viewed as a bullish flag after the rise from 1.035 to 1.31500. So, what’s next?

In the bigger picture, I’m bullish on this pair, but there will also be short-term selling opportunities. I expect the price to move up towards March's high at 1.29, slightly above the wedge trendline. This area should act as resistance, where I will look to sell short term.

I’ll execute this sell idea by using my TRFX indicator to look for sell signals as the price moves above 1.285 towards the high. My stop loss will be above 1.30, and the target will be down towards the bottom of the range at 1.25.

If this first part plays out and we see the move back down towards 1.25, which is the wedge bottom trend line, this will be a great area to get in for long-term buys. The target will be a break and close of the weekly wedge, first aiming for last year's high at 1.315. This will be another good short-term selling area, anticipating a move down to test the wedge breakout area. This could be a spot for buyers to test the 2021 highs above 1.40.

I’ve charted what I believe is the likely path for this pair over the coming months and year ahead. Let me know what you think in the comments.