[B]Hello traders!
I have been looking at the Cable to see the position that we are in with this pair within the last year;
please take a look at this chart first:
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These facts stand out right away:
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there is a rising channel, marked here among equidistant green lines;
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the low/root of the channel is at the 1.48 level;
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the high/peak of the channel is at the 1.72 level;
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the half-way point level between 2) and 3) is at the 1.60 level.
So, how is this going to help us in our outlook?
As you can see on the chart, the low/root of the channel occurred in July 2013,
and the high/peak occurred almost exactly a year later, in July 2014;
the symmetry does not not stop here, however: the half-way level (1.60) was
at the heart of price movements in September 2013 and… it is yet again where
price is gravitating now, a year later, in September 2014.
How can we use us for trading?
In this thread, at this page http://forums.babypips.com/forextown/67973-whats-happening-gbp-usd-10.html,
I stated that a larger head-and-shoulders pattern is taking shape, with the right shoulder being at the historic 1.69-1.70 level;
we are therefore faced with three possibilities:
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a continuation of the bear trend from August to complete said “h & s” pattern all the way to the historic 1.39-1.40 level;
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a repeat of the upward move of September 2013, from the 1.60 level, within the highlighted channel;
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a combination of 1) and 2), namely a last charge up, leading to the BoE rate hike of Spring 2015 before the move lower.
Over to you traders: vote with your money!
Happy trading.
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