Monday, September 14, 2009

Cable Hit Resistance, Sell Now!

Cable H4 Chart
Cable D1 Chart

Above is Cable 4 hour chart. The pair bounce from 1.6688 resistance which I mentioned in my last Cable post. The resistance turns out to be the 61.8% retracement of 'A' to 'B'. I already enter a position near that resistance, targeting the 50% retracement of 'A' to 'B'. I also add Fibonacci of 'B' to 'C' (purple dash) to anticipate a breakout from the current uptrend channel.

Looking at bigger time frame, the pair could be forming head and shoulder reversal pattern. However, it must break the neckline to complete this pattern. If the neckline breaks, the target is the 50% Fibo retracement of 1.3502 low to 1.7042 at 1.5272, exactly 1382 pips from GBP/USD current price.

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