Cable

Right now everyone seems to have an opinion on where this pair is going. From forex tv gurus to my cab driver yesterday all have a comment or two to make. The problem is they all seem to be contrasting and leave you non the wiser. So in keeping with this tradition here is my take.

Firstly, the so called double top is only a double top if the pair reverses from this point. I mentioned earlier this year we would probably retest the high and that is exactly what we are doing. A 786 fail would have been prefered at the intra retest but we have surpassed that. The problem with looking at chart patterns like double tops is they are great for identification but you profit only once the pattern has been created. For longer term trading this is great but for shorter term this is much more difficult although it is useful for our confluence of events. A double top is worthless in an uptrend as is a double bottom in a downtrend.

Now, as opposed to listening to a dozen different peoples opinion on what is happening with the Cable, look at a larger time frame chart and work it out for yourself. I have posted a monthly chart and have drawn on the resistance line with MOB and Osc divergence. EVerything is showing for a reversal but that doesnt mean it will actually do that and for those of you that have been trading for a while you will know exactly what I mean. Watch for a good break and close either above resistance or below a support and check the indicators for a greater confirmation. In addition do some leading analysis to help with your answer.

This trade has already made certain people over £100k in the last two years and has a possiblity of making another good profit soon.

Good luck.