Cable bears will be closely eying the 1:1 (Purple) and 61.8 Fib resistance that coincide at 1.51750, this resistance level has already seen some decent selling throughout Asian trade, with the market currently 50 pips below the high.
As long as the market can continue to hold below this level in the coming sessions I am expecting the selling interest to pick up on the downside with no real support seen until 1.50700.
A 1:1 refers to a current correction being equal in length to a prior correction
The 1:1 (Purple) and 61.8 Fib that coincided at 1.51750 has fail to attract continued selling from the bears.
The 1:1 (Purple) correction was the largest correction in the recent bear trend and the failure of this level to attract solid selling interest is an indication that the current trend is now over and the bulls look to be back in control.
With little resistance until 1.55680 where the old high and a 38.2 Fib level coincide I am expecting the short covering rally to pick up steam in the short term.
Intraday players have been early buyers of Cable after the break above the 1:1 (Purple) with the 1:1 (Yellow) attracting aggressive buying from the bulls. The next support level to watch closely is the 1:1 (Purple) and 38.2 fib that coincide at 1.51700.
A 1:1 refers to a current correction being equal in length to a prior correction
The 1:1 (White) and 23.6 Fib have failed to attract solid selling from the bears with the market eventually taking out this level during last weeks trading. With the market now sitting firmly above this level the short covering that has been seen in recent times could now continue to pick up momentum with little in the way until 68.50.
The 1:1 (White) and 23.6 Fib that initially capped the run higher in oil is now acting as a solid support level with the bulls adding to long positions on a number of occasions over the last several days since the break of this important resistance level.
A break of Friday’s high will likely see good buying enter the market, as this will confirm the current buying that has been seen on the Line in the sand (LIS) at 58.50, however any break below the LIS will likely see a number of stops triggered and an aggressive move to the downside.
The best play moving forward in my opinion is to start buying any solid break above 60.00 and look for selling opportunities on a solid break of the LIS at 58.50.
A 1:1 refers to a current correction being equal in length to a prior correction
The recent run high in Cable has see a number of traders stopped out of short positions post the UK election. The level that will be closely watch now is the 1.5550 high and 38.2 Fib that coincide at this level.
There are likely a large number of stops sitting just above the 1.5550 high and if the bears fail to hold the market below this level, the current short covering is likely to pick up momentum in the short term with little in the way until the 50 Fib at 1.58780.
Intraday players will be closely eying the 1:1 (Purple) and 38.2 Fib that coincide at 1.53900/85, if this support level can attract solid buying interest a break of the 1.5550 high will become a real possibility in the coming days.
A 1:1 refers to a current correction being equal in length to a prior correction
Cable bulls are pushing for a number of vulnerable stops that are sitting just above the old high (Blue) and 38.2 Fib at 1.55700. A break above this level will likely see the momentum on the topside pick up with little in the way of resistance until 1.58780.
The 38.2 Fib (Purple) at 1.53560 offered solid support during Friday’s trading session with buying continuing so far on Monday. An ascending triangle (White) is now starting to take shape which is an indication that higher prices are a greater possibility in the coming sessions.
I will be looking to establish an intraday long position on any solid 1:1 support if a solid close above 1.55700 in seen.
A 1:1 refers to a current correction being equal in length to a prior correction
I mentioned in yesterday Forex report that there were likely a number of large vulnerable stops that were likely sitting just above the 1.55700 level, these stops started get triggered in late NY traded before the market went quiet throughout Asia. London traders have now gone on with the move taking out a number of stops above the 1.55700 level.
The first target still remains the 50 Fib level at 1.58780, with an overall target of 1.6027.
Intraday players will be closely eying two major 1:1 support levels on the downside. The first 1:1 (Yellow) support level currently comes in at 1.56050, with the second 1:1 (Light blue), 50 Fib and old high coming in at 1.55250.
I will be looking to establish long positions once one of the above support levels indicates solid buying interest is likely.
A 1:1 refers to a current correction being equal in length to a prior correction
Cable continues to push higher with the 50 Fib at 1.58780 now only 68 pips away, this level is likely to be tested in the coming days with little to no resistance between here and the 50 Fib.
If the 50 Fib fails to attracted solid selling interest from the bears the momentum will likely continue to pick up with the bulls seeing this as a major win. However the bulls will still need to be wary of the completion of the BC leg at 1.60250 which will complete this Elliott Wave sequence.
Day traders continue to buy Cable on dips since the break of the 1.55700 level and this is unlikely to change in the short term. Intraday players will be closely eying the 1:1 (Purple) and 61.8 Fib that come in at 1.57000 as well as the 1:1 (Light blue), 23.6 and 38.2 Fib at 1.56400.
A 1:1 refers to a current correction being equal in length to a prior correction
I mentioned in my previous Forex report that day traders would likely be closely eying support at 1.57000 and 1.56400. The 1:1 (Purple) support at 1.57000 saw strong buying interest during Fridays trading session but the market failed to take out the 1.58130 high which saw the market close near the lows of the day.
During late US trade on Monday the market tested the 1:1 (light blue), 23.6 and 38.2 Fib at 1.56400 with some interest seen at the support level, Asian traders tested the support level for the second time with the 1:1 still attracting buying interest, the market is now 20 odd pips above the 1:1 support.
Build a long position around the 1:1 (Light blue) looks to be the best play in my opinion with a tight stop at 1.56050.
A 1:1 refers to a current correction being equal in length to a prior correction
Cable has been trading sideways throughout the Asian and early European session after finding support on the 50 Fib (White) (see below) after the sell off overnight. The sell off came with a number of stops being triggered on the break of the 1:1 (Light blue), 23.6 and 38.2 Fib level (see below) on worse than expected data for the UK as well as better than expected US data.
The level to keep a close eye on now is the 1:1 (White) at 1.53900 if the market happens to test this level in the near future and it fails to attract solid buying interest from the bulls a deeper correction is likely to take place.
With the break of the 1:1 (Light blue) intraday players have seen this as an opportunity to sell with the 1:1 (Yellow) at 1.55600 attracting some decent selling in early European trade. If a break of the 50 Fib (White) which is also US low is seen I would expect selling pressure to pick up on the downside.
A 1:1 refers to a current correction being equal in length to a prior correction
