Our take on Cable this morning...

FX:GBPUSD   British Pound / U.S. Dollar
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Coming at you directly from the weekly chart this morning reveals that Cable remains trading below a broken weekly Quasimodo resistance barrier penciled in at 1.4633. With this level holding price lower back in early February, there’s a good chance we may see a re-run of this scenario in the coming weeks. Scrolling down to the daily chart , however, one can see that the bulls are not giving up here without a fight, as support is being seen from the recently engulfed 18th March highs at 1.4514 (green circle).

Stepping across to the H4 chart, demand at 1.4514-1.4475 which held beautifully on Wednesday, is in actual fact the decision-point area where the market decided to push above the 18th March highs. It will only be until this zone is taken out can we expect to see price drive down to daily demand at 1.4297-1.4393 (the next down-side target on the daily timeframe ), essentially the 1.4400 handle on the H4 chart.

Right now, price is trading within a nice-looking H4 sell zone marked with a yellow box:

• A H4 Quasimodo resistance level at 1.4649.
• A broken weekly Quasimodo resistance level seen at 1.4633.
• Psychological resistance 1.4600.

With everything taken into consideration, we feel a short from here is viable today. Nevertheless, given that the H4 demand at 1.4514-1.4475 recently held firm (which as we already know is connected to the break of daily highs – see above), we’re only going to be looking to enter short with the aid of lower timeframe price action confirmation. A break of lower timeframe demand and retest of this area as supply would be perfect, a break below and retest of a trendline or even a collection of selling wicks around lower-timeframe resistance would suffice in our opinion.

Levels to watch/live orders:

• Buys: Flat (Stop loss: N/A).
• Sells: 1.4649/1.4600 Tentative – confirmation required (Stop loss: dependent on where one confirms this area).
ageing very good analysis !
Glad it helps!
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