I’ve written that headline a few times over the months and in this case it’s cable that has given us an up’n’ down moment in this session
Early buyers tested decent fibonacci levels between 1.6880-90 and there were offers at 1.6885 with larger at 1.6900. As I pointed out in the comments section sometimes the orders don’t have to be large to have effect if there are enough reasons lining up and in this case we had strong EURGBP bids at 0.8080-85 which were being tested at the same time.
The power of the orderboard also nods it’s head to the effect of technical analysis and the two invariably, but not always, work hand in hand so we have to add up the whole package and look at other affecting pairs when making our trading decisions.
Cable can be a cruel mistress but also a very rewarding one and in this case has provided good opportunity for bulls and bears alike with a drop to 1.6813 from 1.6882 and then a bounce to 1.6828 with EURGBP also giving some relatively easy pips from 0.8085 back to 0.8117 where it’s run into strong offers again.
Use the orderboards as you please but in these every decreasing ranges and volumes you can’t deny their impact. Flow after all, is everything
I’m in the process of completing a downloadable handy hints guide to using the orderboard info which I hope will also help in your decision making
