Since coming off the late April early May highs cable has failed to make any favourable bounces. Unlike the teflon euro the pound has been more susceptible to the recent dollar moves.

And so we find the pair in a falling channel whose top we are approaching now.

1.5130 seems to be the level holding us for now.

gbpusdh4 24 05 2013

A break up pushes us towards resistance at 1.5151 the 55 H4 ma at 1.5193 which also hold resistance at 1.5196.

Going south, small support is seen at 1.5100 with stronger at 1.5080/85 then 1.5050 (amongst Mike’s orders) and then 1.5037.

Despite my bearish take on the pair I still feel there’s value in my longs and I’m happy to hold for the moment.

The trade hasn’t gone exactly according to my plan but importantly it has remained within my parameters and so the trade remains manageable. I’m in the money now on my average and have moved my stops right up.