For those who read our previous report on Cable http://blog.icmarkets.com/monday-10th-august-weekly-technical-outlook-and-review/
you may recall us mentioning to keep a close eye on 1.5500 for a potential break and retest buying opportunity. As you can see, this played out to perfection. Price closed above 1.5500 mid-way through the London session, and retested it as support going into the early hours of the U.S. session. We managed to find a beautiful entry long on the 5 minute timeframe via a pin-bar candle painted at 13.20pm GMT
yesterday. Partial profits were quickly taken at 1.5537 and 1.5564 with 30% of our remaining position still left to run in the market with the hope of price reaching 4hr supply coming in at 1.5635-1.5618. Before this happens though, we’re prepared for a possible retracement to retest 1.5564 as support (see black arrows), which in itself, could provide a nice base in which to pyramid our current long position today should we see corresponding lower timeframe confirming price action.
This drive north should not come as much of a surprise, however, since as we mentioned in yesterday’s report, price was trading at not only a weekly swap (support) level at 1.5451, but also daily support drawn from 1.5484, as well as the daily ascending channel
support taken from the low 1.5087.
Levels to watch/ live orders:
• Buys: 1.5564 Tentative – confirmation required (Stop loss: dependent on where one confirms this level).
• Sells: Flat (Stop loss: N/A).