Cable traded higher and came within striking distance of 1.6225 target at 1.6209. Currently
we are in a position of strength and we would therefore look to buy into weakness
seen this morning with again 1.6090 to 1.6040 a good place to re-introduce longs.
We would hold longs unless a break below 1.6040 occurs. If we lose this support then
we wait for 1.5995/75 before going back into long positions.
Now if we fail to dip lower and hold 1.6160/40 we are going to see another thrust higher
for 1.6210 to 1.6225. Again we look to cover all longs. We would be buyers only above
1.6255 for 1.6285/95 through to 1.6316. here is where we cover all longs and stay sidelined
until the next direction becomes clearer.
EUR/USD:
Euros traded towards 1.4140 as expected and failed to break higher which in turn has put
pressure on the downside. We are sill currently below trendline resistance at 1.4140 and
this has made the market look a little weaker even with oversold conditions evident on the
daily charts...
We have support in the 1.4030/20 area and again at 1.3980 and it is only below 1.3950
where we would see further selling pressure which should then take us lower for 1.3905.
This is excellent support from med term 50% fib level therefore we have to attempt small
longs here looking for a bounce..
To take off further downward pressure we need to be above 1.4160 and only then would we
be in a good position to trade higher with 1.4120 then targeted.
EUR/GBP:
Eur/Stg failed to break 8755 and this has provoked a move lower...Now as stated yesterday
we have good support here to 8675 and we would view to cover all short positions here. Attempt
small longs as this is a small trendline and we would hold longs unless a break is
posted below 8640.
If we do lose 8640 then we are looking at this coming lower for 8622/19 initially then 8585.
This should be enough on the downside and we look therefore to cover shorts to 8585 and
attempt small longs once more.
We hold 8675 and we are looking at the market coming back to 8722/30 area where we
would cover longs once more. We have quite a bit of resistance in this 8730/55 band and
therefore we would not be buyers unless we see a clear break of 8755.
