Trendline Support

Welcome to another trading week and generally one of the biggest stock market rally months. December we tend to see the Santa Cluas rally which usually provides an uptrend prior to Christmas although that has not always been the case in recent years.

Cable is continuing it's uptrend and the Doji from a few weeks ago halted the upward trend temporarily, this pair is still climbing.

The divergence us a concern and although I think we could deal much higher so I would look for some form of support. I have drawn a trendline as a basic level of support on the weekly chart. I used a weekly chart to cut out small time frame noise and whipsaws as we could be in for a volatile month. Historically Cable tends to gain strength during this month and weakens in January.

Below is the weekly GBPUSD chart.

Chart courtesy of Advanced Get. Data provided by eSignal.

FXCPS Team