By: Adrian Friggieri
Although cable seems to want to push back up again and continue the uptrend of July, having a look at the markets there seems to be not enough steam to move the pair forward. Positive news is helping some weak rebound but to soon again find resistance and fall back off, sometimes even at a lower low.
The range that cable has been into during the last weeks seems holding strong and cable is still more or less in a directionless state. Daily movements backed up by news have been moving the range a little bit faster however the pair gets back to its range soon after.
So the ultimate question, how long is this ranging going to last? Cannot tell as yet! The markets seem to want cable to move upwards and the sentiment possibly is there too but the day to day trading is not showing that in any way. Daily and 4 hourly charts are not showing any clear turning point of any indication that the range is soon to be over as yet. Of course the market needs closer monitoring in the next days or even possibly weeks in order to determine its medium to long term direction.
Meanwhile in the short term we remain cautious and we follow the range, not taking long term positions and trading the charts rather than anything else. Following the rule of trade what you see and not what you wish is the key right now if you want to chase some pips in cable.
