Cable Heading Up?

The GBPUSD seems to be showing a little strength again. This can be analyzed by the Ellipse and fib reversal on the daily chart which is at 2.05 the figure. I have not added the 4 hour chart but if you check your own charts you will see a convergence with the MACD. In addition, if you take your MOB from the previous swing low on the same time frame you will notice price hit the bottom at the figure 2.04 with tram tracks. Watch the 1 hour for a break above the MOB.

On the daily we have Stochastics NFB showing the uptrend. We have now reached oversold territory so a Stochastics NFB strategy approach maybe possible. This by taking fib from August 17th 2007 to the recent swing high and you will notice we have a cluster with the recent fib reversal.

All in all we have a confluence of events. For this to be accurate and confirmed you will need to use a strategy you feel appropriate to take this trade. Risk is quite low right now but you must use a suitable entry/stop loss technique. Do not chase this trade.

GBPUSD Daily Chart . Chart courtesy of Advanced Get. Data provided by eSignal.


GBPUSD 15 Minute Chart . Chart courtesy of Advanced Get. Data provided by eSignal.


GBPUSD Hourly Chart. Chart courtesy of Advanced Get. Data provided by eSignal.

In addition to all the above, have a look at USDCHF. Im profiting very well from this and you might want to consider analyzing this one. Look for a continuation like we saw when USDCAD broke through 1.0000 or a bounce up from the figure (which is not far away now).

Sorry, due to an over extended shopping day yesterday we did not make it back in time to give you all an update.

FXCPS Team.