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Pound Targeting 1.3500?

The Pound could be targeting the 1.3500 round level in June. Exhibit A is the chart below. Notice how after a strong +900 pips rally from the lows the pair is now consolidating. The fact that we're currently quoted less then 200 pips below the highs signals to me that this is just a healthy retracement on the way to more gains. The UK election is coming up soon and that should act as a price catalyst as well.
But what could be our target? The nearest resistance level can be found at the 1.3448 s…
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Cable to Rally Post-Brexit

I expect Cable to rally in the aftermath of the start of Brexit negotiations. First reason for this is the fact that the worst is now behind the UK. Markets have pummelled the Pound in the ground already discounted a lot of negative scenarios. Thus a positive surprise could led to large GBP rally.
The second reason is our first chart above. Notice the three bottoms pattern. Some may see an irregular Head and Shoulders formation. In any case it looks like the bears have checked out and the bulls…
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Cable Back in Oversold Territory

Cable is back in oversold territory. Let’s take a look at tour first chart below. Notice how on the daily chart the Stoch (5,3,3) dipped below the 20 figure. This is considered oversold in technical analysis. The climb back above the level confirms the ‘buy’ signal.
Our second chart below shows a similar oversold pattern but one that has run its course further then on the daily chart. Here the dip and climb back above the 20 level happened few bars ago.
I’m targeting 1.2781. This is right belo…
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Pound to Head Toward 1.3000

It’s been a rough two-and-half years for the Pound. The pair lost over 5,000 pips from its highs back in July 2014. But even during the middle of that carnage we had some ‘dead cat’ bounces. On our first chart below notice how we get these small rallies whenever the Stochastic Oscillator dips below 20 and then recovers and heads higher.
With hindsight these small uptrends may not seem like much on first glance, keep in mind that this is a monthly chart. The duration of one TA contest cycle enco…
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Elens94 avatar
Elens94 1 12月

Excellent stuff !

TInna avatar
TInna 1 12月

well done!

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Time for a Reversal in Cable

The Pound has been one of the worst performing currencies this year. Hit by speculative shorts after Brexit, the GBP can't catch a break despite a series of surprising economic news. But the technicals may be pointing to a turn of the tide. On our first chart below we see two important signals.
First, the GBP/USD printed lows below 20 on the Stochastic Oscillator (oversold territory) and is now rallying back above it. This is a bullish signal. Two, we are seeing a bullish divergence between the …
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Brexit Support Will Not Hold

Cable has been relatively stable post-Brexit. The lows hit shortly after the event have yet to be broken. But the bears are not giving up yet! On our first chart below we can see that prices have made two attempts post-Brexit to crack the 1.2800 support. So far the level is holding but with each new test, the odds increase that we will see a break.
On our next chart below we can see that the long-term trend for GBP/USD has been down. We are currently quoted over 4,000 pips below the highs noted…
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Buying the Pullback?

With the Brexit panic subsiding , the GBP/USD could finally find a bottom. On the 4 Hour chart below we see an interesting formation. We were in an upward trend which then stalled on some post-Jackson Hole Dollar gains. But now we're moving back up again. This could be a classic buy the pullback opportunity.
Another reason why more gains may follow is the oversold situation in Cable. On the weekly chart below we can see how unrelenting and one-sided the selling has been since 2014. We're now dow…
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Cable is Oversold

The GBP/USD dropped over 10% shortly after Brexit. While we've had some stabilization since then, prices are still relatively low as can be seen on the chart below. The weekly Stochastic Oscillator is still in oversold territory at 14.
Let's take a look at the lower timeframe chart. Cable hit a low of 1.2797 in the Brexit aftermath. Later on prices retraced to a high of 1.3480 and we're currently quoted at 1.3233. The 4H chart shows a choppy but undeniably upward sloping movement.
The weekly is …
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Cable to Clawback Some Brexit Losses

I expect Cable to clawback some of the post-Brexit losses. As you probably know unless you lived under a rock, past week the UK voted to leave the EU. This crashed the Pound from over 1.5000 to just 1.3291 right now. A combination of uncertainty and increased odds for extra QE by the BOE lead to severe losses. Few days ago a low point of 1.3116 was hit. I have a reason to believe this is the lowest we'll get, at least this summer.
For one, look at the daily chart below. The Stochastic Oscillator…
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Potentially Large Gains for Cable

We could potentially see large gains in Cable. The pair has been repressed in the past year by political instability. First by the Scottish independence referendum last year and now by the coming EU exit referendum. But as time goes on the 'Remain' camp continues to secure the lead. This could lead to some short squeezing as we get closer to the referendum date in June.
On the daily chart below we can see a completed reverse Head and Shoulders pattern. This signals that more gains could be on th…
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