Cable spikes on UK clearer buying

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Just nudged sharply up to 1.6000 on an early dawn raid by a major UK bank , but offers sitting up at 1.6000/10 are expected to make progress slow.

The move knocked the wind out of EUR/GBP’s sails revisiting Monday’s lows of 0.8123,  and turns  focus back again on the  200 day MA at 0.8108.

GBP/USD’s around 1.5989 with the cross at 0.8128

2012-10-24T07:12:12+0000

All|Economic Data|Europe|Regions

Cable|EUR/GBP

Pete Jackson

3 Comments

  1. thanks Pete did you mean the 200 hourly MA?

  2. morning piphunter the 200 day MA for EUR/GBP i have as 0.8108 (reuters)

  3. Cable has indeed continued lower from last week’s high at 1.6180 (and test of the bear trendline from the Sept high), finally taking out the Oct 10th low at 1.5980. With the near term downside pattern over the last week still not “complete”, further weakness is favored. However, the market is nearing potentially important support at 1.5900/15 (both a 38% retracement from the July low at 1.5270 and the base of the bear channel from the Sept high, so will want to get very aggressive with trailing stops on approach (if still positioned). Nearby resistance is seen at the broken 1.5980/90 low and 1.6065/80. A final note in the bigger picture, trade from the Sept high at 1.6300 is seen as a correction (wave 4 in the rally from the July 12th low at 1.5400, though still no signs of even a nearer term low (never mind a more substantial one).

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