It’s a similar situation for the Cable as it has been since the start of Feb. We’re still in a range bound market with no clear indication as to when we’re going to ‘break out’. During the last couple of days in February and the first couple in March we saw the market break above the important 1.63 level by 50pips; however we saw the pair quickly reversed any gains and pushed back into the range consequently falling back towards the 1.6 level. Here we saw the market break lower followed by another quick reversal and a push back into the range.
Out analysis last week for the GBP suggested we may see a bullish market pushing the pair back towards the upper end of the range. The early part of the week was very choppy with little direction; a push up was followed by a push down. Finally towards the end of the week we saw some strong bullish momentum pushing the cable back towards higher ground and closing just shy of 1.63.
Price action is giving little away on the daily timeframe. We’re nearing the higher end of the range again and we may have to wait for any breaks out of this choppy market before entering any trades. The next significant levels of resistance are 1.63 – 1.6350. Any break and close above these levels will suggest more bullish momentum. Being such strong resistance areas recently we will be looking for any suggestions of rejection and opportunities to go short on the lower timeframes.
The weekly charts are showing interesting information as last week closed as an inside bar. Looking at the cable recently on the weekly timeframe we can see 2 inside bars have formed since December all of which have been continuation patterns resulting in the market continuing to push higher. The weekly timeframe suggests the same as the daily. We’re still in a very choppy market and need to be patient waiting for any confirmation signals before deciding which direction the cable is headed for