- Cable has rallied over 30 big figures off its lows, consolidated below 1.66 with a strong bullish base at 1.62, and then made a new high above 1.67. I consider the resulting price action with prices falling below 1.60 albeit briefly, to be quite bearish. Therefore I’m hoping to pick an interim top looking for a squeeze down into the mid-1.50’s.
- EUR/GBP has arrested its recent fall and with heavy buying interest towards .8525, I believe the cross has turned and can re-test .9000 in the next 6/8 weeks. EUR/GBP at .90 and EUR/USD at 1.40 sees cable at 1.55.
- I can’t break the habits of a lifetime by buying sterling!
- I sense that the short term charts are getting exhausted here on the 1.64 handle and I’m watching closely for signs of a topping formation or additional weakness below say 1.6350 which might indicate that the turn is upon us.
I am of course talking my position.