Cable being supported by Brent Crude / Caution for any shorts
Update ** Short Biased on Cable. Next Weekly Support area at 1.4200
Well based on chat over the couple days there has been an increase in volume in individuals considering shorts pretty soon on the Cable (Including myself). But what makes me hesitant is the widening spread between Brent / WTI Crude, with Brent moving back above the physiological $60.00 Level. Production of Brent has increased recently, but keep in mind so has export of oil from the U.K. There has also been many reputable research names publishing a more positive outlook on the U.K economy which has obviously assisted the pound. Another issue at hand is the fixed income markets expectation of a U.S. rate hike in June, with bets being dialed back. Also, the U.S. 10 Year Yield is back below 2.00% which also weakens the DXY. U.K. 10 Yrs Yields have also been rising for roughly the past month supporting the pound.
So bulls have the backing to push Cable higher for a test of the 1.6000 area. Longs are preferred on pullbacks.
Some technical notes to keep in mind:
- The Daily 100 MA Resistance is at 1.5575 (You can see a pull back here to enter long)
- The Daily 200 MA Resistance is at 1.6147 (Confluence with the Weekly .50 Fib , Prior Resistance)
Cheers, happy trading =)
Well based on chat over the couple days there has been an increase in volume in individuals considering shorts pretty soon on the Cable (Including myself). But what makes me hesitant is the widening spread between Brent / WTI Crude, with Brent moving back above the physiological $60.00 Level. Production of Brent has increased recently, but keep in mind so has export of oil from the U.K. There has also been many reputable research names publishing a more positive outlook on the U.K economy which has obviously assisted the pound. Another issue at hand is the fixed income markets expectation of a U.S. rate hike in June, with bets being dialed back. Also, the U.S. 10 Year Yield is back below 2.00% which also weakens the DXY. U.K. 10 Yrs Yields have also been rising for roughly the past month supporting the pound.
So bulls have the backing to push Cable higher for a test of the 1.6000 area. Longs are preferred on pullbacks.
Some technical notes to keep in mind:
- The Daily 100 MA Resistance is at 1.5575 (You can see a pull back here to enter long)
- The Daily 200 MA Resistance is at 1.6147 (Confluence with the Weekly .50 Fib , Prior Resistance)
Cheers, happy trading =)