It’s too early to call a top but cable has been on a one-way run higher for a year and it’s probably time for a break.
The cable chart is a reminder that tops are rarely spikes higher that turn around and continue falling. Even if you missed selling right ahead of 1.70 and the quick 250 pip fall, there was still a chance to fade it last week above 1.69 and even now at 1.6800 the potential downside is far larger than the upside.
The turnaround today is another negative signal on the chart and the series of higher highs and higher lows is breaking down. In the grander scheme of things, a call to 1.59-1.61 would still fall within the range of a healthy correction.
GBPUSD daily
In the short term, offers are at 1.6830/35, stronger at 1.6855/65 and the session high at 1.6882. Small bids are at 1.6785 then around 1.6750 and the 55-dma at 1.6744.
