As you are probably aware, I’m bullish on cable and I think the pair will start trading on a higher plane roughly between 1.55/1.75 over the coming months. I realise that the savage spending cuts will impact on British GDP but it will be some months before this happens and in the meantime there is a lot of hot money looking for a stable ‘hard’ home.
I’m in the dip-buying camp and although cable does not trade as technically as other pairs I’m still happy to buy a 61.8% retracement to 1.5905 in the expectation that we will enter a bullish 5th wave of the bigger C wave which started at 1.5300.
