Our take on Cable's recent movement, anyone seeing different?

FX:GBPUSD   British Pound / U.S. Dollar
167 0 4
Unlike the EUR/USD             , the GBP/USD             saw very little action during yesterday’s trade. Price remained teasing the top-side of the 4hr swap level sitting at 1.5544. From the 4hr timeframe alone, we feel this pair is currently at boiling point to breakout north. Take a look above current price. The four black arrows marking the following wicks: 1.5606/1.5626/1.5641/1.5589 is where we believe supply has already been consumed, and as such the path north cleared for buying.

With that said though, we’re not seeing much from the weekly timeframe at the moment as price is hovering between two weekly swap levels – 1.5451/1.5733. Nevertheless, as we move down to the daily timeframe , we can see that price is trading deep within a daily supply (now acting demand in our opinion) area at 1.5627-1.5531.

Given the points made above, 1.5544 will play a key role in our decision-making process today. Should 1.5544 continue to hold and lower timeframe buying confirmation presents itself, we’d likely consider taking a long position from here, targeting the 4hr supply area seen at 1.5674-1.5642. In the event that price drives below 1.5544, however, the river south should be ‘ripple free’ so to speak down to a 4hr swap area at 1.5485-1.5460. For us to be given the green light to short following the break lower, nonetheless, we need to see not only a retest of 1.5544 as resistance, but also lower timeframe resistance hold firm.

In closing, we are still also very interested in shorting the 4hr supply area at 1.5731-1.5690 (pending sell order set at 1.5686) should price reach this high, since it converges beautifully with the following structures:

1. Bearish Harmonic Gartley pattern which completes just above this 4hr supply area at 1.5739.
2. The weekly swap level at 1.5733 is seen two pips above this area of 4hr supply.
3. Positioned nicely within daily supply coming in at 1.5787-1.5687.
4. Round number resistance seen at 1.5700.
5. 4hr downtrend line from the high 1.5928.

Levels to watch/ live orders:

• Buys: 1.5544 (Stop loss: dependent on where one confirms this level).
• Sells: 1.5686 (Stop loss: 1.5778).

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