Good morning everyone.
Cable is showing no signs of retracing the move that took us up through 1.5500 and looks happy to stay above the level.
The topside still beckons but yesterday’s moves have taken us below an intraday trend line. I don’t usually hold much sway with such short term indicators but if markets are quiet you can see patterns developing. Certainly scalpers take advantage of such things.
Still the top channel line is keeping a lid on progress, along with strong sell orders/options at 1.5600 and the 50 fib at 1.5604. I did hear unsubstantiated talk of a large 1.5606 option yesterday (which I’ll try to do some digging on today).
We are also failing to get a close above the 100 dma at 1.5552 despite trading above it the last two days.
Overall the pair remains well supported with the first line of decent support down at 1.5488. The market is happy with the 1.55-56 range for the moment with dip buying the main entry play.
Obviously this afternoon we have the last of the fireworks displays in non-farm payrolls.
We certainly have been spoilt this week with the data and action. Hopefully today will continue the theme.
