- Monthly : Broken wedge support below 1.5243. Forget how far down it's come, this is a fresh trade signal for a possible new phase in the sell-off.
- Below here, 1.4813 is another very significant chart point.
- Pyramid in. Initial short established at 1.5188.
- Breaks like this should get to work quickly (eg EUR/USD break of 1.3515 in Aug14 or the recent Copper break at 2.9035), so the stop loss on this trade is clear.
3 comments:
-1.5255
TS, my 2c, for whatever it is worth:
On the weekly chart we can see potential for this pair to test 1.48 in the next few weeks. On the other hand, cable has fallen a long way already and is close to a cluster of long-term supports. Fundamentally, the UK story is better than most of the Eurozone and not far behind the US. By the time a signal is generated on a monthly chart, most of the move may already be over, unless there is a strong new factor to push the pair further. I don't see that push coming for cable. Better to take signals from lower time frames and use the HTFs to filter for overall trend direction.
Btw, I just entered long cable (I trade on 4h charts) with a correspondingly small SL.
If you're right about the monthly move we should see a test to 1.35 in the next few months - I'm sure you wouldn't mind that :-)
Pandu
our of my cable long for a small loss. Too volatile today. The big QE anticipated from the ECB may be the push that drives EU lower, which drags GBP lower with it. I'm staying out of these pairs until the ECB announcement. All the best :-)
Pandu
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