It started so well today with the market setting up for intraday rally. So it did with minimal news to sway opinion any other way. As analyzed in our earlier post, “Cable Analysis” below, the market broke the 38 and 50% resistance barriers on the Fibonacci numbers reaching the 1.4600, (over 40-pips above our expected level).
The market soon receded below the 1.4560 level our 50% Fib. One would have expected a consolidation but, to our surprise Cable, GBPUSD shifted gear in the rapid sell-off by sliding further to the 1.4400 mark.
Cable Gain Evaporates
From the hourly timeframe, this minor trend is still remain intact but positional traders may still have a lot to say about it. At the moment, the pair is looking bearish on the 4H and daily timeframes and as the 50- and 200-moving averages are violated this could only heighten players’ bias.
Will I be shocked to find the market where the day began at 1.4350?  Certainly not.  With the G7 meeting coming up over the weekend that could only build support traders for the need to clear the table to keep gains.
For us here, we will keep our options open as ever.
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