Cable S&R - Spells Bullish Brit? $2+

[The Baptist]

Hi,

I have attached a weekly Chart of Cable (GBP/USD), with some basic Support & Resistance Analysis.

It is easy to forget that the first time Sterling closed above 1.92 (at a weekly level) for decades was just this past November the 24th, it did so on extreme volume with a similar follow through day on the next trading session.

The significance of this was that prior to this, a close above 1.92 had been repeatedly repelled as evidenced by my chart since November 2004. ( Marked with Olive arrows).

Interestingly This same level provided support around the 9th of March 2007. If Cable is underpinned as Robustly as resistance was provided at this level, it would be highly bullish.

I think the magic $2.00 mark is imminent, possibly soon with todays recent bullishness, this weeks Candle lays a far stronger platform for a break through than the January high repelled at the 1.99 level.

Could be a media frolic when this barrier falls, which may indeed be a time to sell/reverse into on a short term basis for swing traders.

I am biasing to medium term long. Further US Mortgage woes may come riding to the back of this one?

What do you Think?

 

[Crap Buddist]

well, I agree with the $2.00 being blown out, cables still very bullish on my setup looking at the dailies, that prod to 1.92 was a long load up point on my charts , I went long 9208, but i hop on and off. But i certainly did notice this pullback on the dailies. This beast aint nowhere near done with upside yet.

 

[frugi]

A pop over $2 should coincide with one of these potential support zones on the DX.
I'd be surprised if it manages more than 300 pips above $2 before being beaten back down to the 1.8s.