I’m thinking of cable and EUR/USD here.
Cable has broken through its previous support/resistance pivot around 1.5550 and has stabilised. Some would argue that the lack of immediate follow-through once a big resistance level is broken is a bearish sign but I tend to disagree. The fact that the market has consolidated around 1.5600 for the last few sessions tells me that the break was not a false one and therefore there should be more gains soon once the consolidation period is over.
Similarly with EUR/USD and its consolidation around 1.30 but the case is less compelling in my opinion than the cable. This is another argument for selling the break of .8300 in EUR/GBP perhaps?
