Cable reversal is the kind of thing that makes a trader paranoid
Sharp turnaround after technical levels hit
I highlighted cable resistance levels on Wednesday and I've been watching them closely because I think the pound is headed lower.
Two main ones I was watching were the late-Oct low of 1.5245 and the 50% retracement of last week's decline at 1.5261. So what was the spike high? 1.5264 -- three pips above resistance. It's since tumbled to 1.5187.
That's a painful lesson in trading. As every trader knows, a stop that's too tight is the difference between job and frustration.