In this chart I decided to focus on timing momentum via the use of fundamental events.
These are the pieces of information the market will be expecting before deciding in its direction.
The events in red are the ones that will create the strongest volatility when announced, non-farm payrolls and the interest rate decision by the BoE.
Smaller news mostly have an impact on retail traders who create the small momentum surges we see here, while the larger timeframe trader (institutions and large speculators) continue in the direction they had established before, which created the trend in the first place.
Small surges of supply create the peaks and troughs, but paradigm shifts will be fueled by fundamental events, observable in the chart as well.
As long as the 1.54 level holds, and if we see price move away from it, upwards, I expect cable to rally further, easily reaching 1.58 in the short term.
Let's see how this unfolds, shall we?
These are the pieces of information the market will be expecting before deciding in its direction.
The events in red are the ones that will create the strongest volatility when announced, non-farm payrolls and the interest rate decision by the BoE.
Smaller news mostly have an impact on retail traders who create the small momentum surges we see here, while the larger timeframe trader (institutions and large speculators) continue in the direction they had established before, which created the trend in the first place.
Small surges of supply create the peaks and troughs, but paradigm shifts will be fueled by fundamental events, observable in the chart as well.
As long as the 1.54 level holds, and if we see price move away from it, upwards, I expect cable to rally further, easily reaching 1.58 in the short term.
Let's see how this unfolds, shall we?
