Waiting for the Cable Ride?

Good evening ladies and gentlemen

I hope you all had a wonderful weekend and were blessed with some of the stunning weather we got here in The UK. Sunday was the hottest day in the year so far. I made the most of it by playing golf, relaxing up in the city with my cousin and some friends and also no long weekend would be complete without a barbecue. So I was refreshed and recharged to attack this trading week (all be it a 4 day one) with vigour and passion but oh so very mechanical!! Hopefully you spent the weekend doing things you love and with people who mean the most to you!?

So I thought I would revisit the currency which I wrote my first update on about 3 months ago, which is The Cable or the GBPUSD. Since last week, this major pair have made interesting moves which may interest the swing trader but I feel a certain patience may be involved before an entry can be determined. Below is the weekly chart. Since May 2007 we can see price fell rapidly till then turn of the year. Since January 2009, price has been making a fight back. It has broken through a previous Resistance and is now approaching the RN. If it breaks through this, the next obstacle is a fib breather level. As SM we should know that a retracement follows every big move! So what is it that we are seeing unfold before us? Can we see a further move up before a reversal? Is this a FBO and will the figure hold strong? Where is the VI? What are the other indicators saying? Currently MACD is doing higher highs. RSI has crossed over the midline and has some way to go before it is OB!

Below is the daily so we can analyise in more detail what is happening. As we can see, last Thursday price broke through a R cluster of the VI and a R line. It is now hovering around the mentioned RN, creating several indecision candles. What can we expect on the time frame? The indicators look interesting. There is divergence on MACD and RSI is OB! Could this mean we may some weakness before a further move up? Is there a possible restest of the VI which could then be used as the catalyst for a price increase? Or as suggested is this a FBO as price is sitting in very close proximity to a conservative breather level?! Is a reversal on the cards? As always, all we can do is let the market dictate the course of action and as SM take the appropriate action with timing be key! It will interesting to see how action unfolds!!

Remember to do your own analysis!

I am not sure where my right my hand is gone?! HHmmmm...... Hope all is well matey!?

The answer to Richard's riddle on Thursday is "you word!"

My riddle is who said the quotes at the end of Jedi Master Saba Jackson's update from this morning?

Till Tomorrow

Abundance is your Birth Right

Zaheer Anwari