Cable failed to make headway on the topside on Friday, some of this due to the EUR/GBP cross which bounced from significant support at 8220/00 to 8295. This obviously depressed the Cable market, and we held below 1.6790. Now our med term technical indicators are neutral, so we have to stick within support and resistance levels. This resistance today is 1.6790 again.
If we cannot break above here we are going to come lower, and below 1.6700 we would be looking at a weekly target of 1.6593/85. We do have levels of support prior this one, but please do keep this one in the back of your mind. Immediate support is at 1.6625 and it is therefore prudent to cover all short positions just prior this support and only re-sell the market if we can break below 1.6620.
Currently we are below the daily pivot of 1.6732. If this continues we will not make it back to the 1.6765/70 resistance and this will obviously put pressure on the sellers to take us lower.
Now above 1.6790 and we have the 1.6824/45 resistance band. We cover all longs in this vicinity. Sell here as well looking for a correction, and keep your stops above 1.6855 for 1.6880.
GBP/USD Daily Chart" title="GBP/USD Daily Chart" width="474" height="242">