Cable possible LONG move
This pair has been consolidating in a ~200 pip range since mid July. Both monthly and weekly price action shows there is no real bullish or bearish momentum.
As can be seen, the range is formulated by the 61.8 and 38.2 fib levels, with the 61.8 acting as support and 38.2 as strong resistance. On the daily timeframe, it is evident that the 38.2 fib is acting as strong resistance since price failed to close above this level on several occasions.
Today, price did break the counter trend line, however, to consider a long move, it will be logical to wait for a daily close above the resistance. If this does occur, I will look for a retest of this resistance to see if it holds on a smaller timeframe before entering the trade. Target 1 will be the height of the range added to the breakout, which is conflent to a previous resistance level highlighted on the chart. Also it falls on the 1.5800 round number. If this level is broken, it is likely this pair will revisit previous highs of 1.5900, and then potentially create a new higher high at the -27 fib which is in line with the upper boundary of the ascending channel.
As can be seen, the range is formulated by the 61.8 and 38.2 fib levels, with the 61.8 acting as support and 38.2 as strong resistance. On the daily timeframe, it is evident that the 38.2 fib is acting as strong resistance since price failed to close above this level on several occasions.
Today, price did break the counter trend line, however, to consider a long move, it will be logical to wait for a daily close above the resistance. If this does occur, I will look for a retest of this resistance to see if it holds on a smaller timeframe before entering the trade. Target 1 will be the height of the range added to the breakout, which is conflent to a previous resistance level highlighted on the chart. Also it falls on the 1.5800 round number. If this level is broken, it is likely this pair will revisit previous highs of 1.5900, and then potentially create a new higher high at the -27 fib which is in line with the upper boundary of the ascending channel.
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