Cable is still knocking out new highs
There's no stopping the pound today.
1.2767 takes cable through the resistance area but the last high around the Nov 2016, and indeed the 5th Oct high before the flash crash remains intact.
GBPUSD H4 chart
Both GBPJPY and EURGBP have found respective tops and bottoms right now, and that will help put a break on cable.
GBPJPY and EURGBP
The measure of a rally is always by the levels it breaks. I had a short at 1.2700 because I didn't believe in this rally. I lost 15 pips being proved wrong. That's all trading is, asking a question of a move and setting your risk levels accordingly if you're wrong. Would I short this rally right now to hold for the next few sessions? Not on your life as there seems to be a shift in sentiment underway. That doesn't mean you can't try shorts but you have to pick your spots and trade the risk accordingly. That means tight stops if you're going against the flow, and having patience in picking the support levels for dips rather than chasing.
Who knows what happens next but if you're trading it, ask the questions. If the price is going to do XYZ, it has got to do X first. If it can't, then it's back to W and then V. The 1.2770/80 area is now X so forget about Y & Z until that's been decided.
