We’re in one of those situations where the tech is fleeting and many get itchy over trying to pick a top. It can become easy for your eyes to play tricks with your mind as you look at a strong trending chart and the urge to just sell it comes to the fore.

With cable at the moment it’s tough for those sitting on the sidelines. Do you chase the move up or do you try to guess the top? The insatiable appetite to do anything other than nothing usually leads to a loss.

It’s why I don’t like chasing a trade and why I have levels that I look at to trade from. Even if it means I miss out on a 1000 pip move, if I’m not in where I want to be then I forget it.

This particular move can be quite dangerous. If it had ripped up 100+ pips this morning then you’d have a better chance of catching a top, if you so wished. This slow move can suck people in for hours then spit them out in minutes.

The 50 fib on the chart I posted earlier is one level to look at 1.7330. Looking at an even longer term chart there’s plenty of noise in between here and there.

GBP/USD monthly chart 19 06 2014

GBP/USD monthly chart 19 06 2014

This 1.7040/50 level is a big level as it marks various points going back through to to the mid-late 90’s. Whether it’s stopping on a dime is, to a certain extent, irrelevant. It will be the close that could be the defining factor from here.

Above here the second line (white) marks another series of support and resistance points around 1.7150/70. There’s a few more points up to 1.7200/30, so as far as the tech goes there are some points worth noting.

If your trigger finger is itching too much then longs should look for a test of 1.70 to hold before thinking about jumping in. That’s where I’m looking but I’ll be keeping it fairly tight with a stop on a break of 1.6970/75.

As for the top, well, the points mentioned may give opportunity for some pips but the dip buyers have been strong of late and they may not want to yield too much.

There’s pips to be made but it’s a dangerous game for some traders and urging patience is the best advise there is.