The bulls now look to have taken full control of cable with the 50 Fibonacci level at 1.5878 offering little to no resistance.
Cable has taken out a number of stops that were sitting just above the 1.58150 high on the back of the FOMC during yesterdays US trading session. The buying has continued during the Asian and European sessions with the bulls now having taken out the 50 Fibonacci level at 1.5878, the level offered little to no resistance which is a worrying sign for the bears.
The two most important levels to keep a close eye on now will be the 1:1 (White) that comes in at 1.5847 and the 1:1 (Purple) and 23.6 Fibonacci levels that coincide at 1.5835. If one of these support levels can attract some solid buying interest from the bulls some further gains are likely again today in cable. However any failure at these levels will see a further correction take place with the next major support in this degree coming in at 1.5790.
* A 1:1 refers to a current correction being equal in length to a prior correction
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