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CURRENCY ANALYSIS

The Cable

The Cable, GBPUSD, Currency Analysis, fx trader, forex

07 Sep 2016

The Cable has failed to gather momentum in the trend since the surprising decision for Britain to leave the EU earlier this year. In this article, I will be looking at The GBPUSD from a technical perspective to see where the future lies and if there is further weakness in the trend.

As a long-term trend trader, I look at the monthly, weekly and daily time frames in unison to gather a complete picture of what price is suggesting. I then look to go in the direction of the major trend.

The monthly chart below is used to define the overall trend and major levels of support and resistance, highlighted by the red and green levels. Price has been weakening since 1.7000 in 2014 and so bearish opportunities is what I have been taking advantage of. This currency handed out good profit in its decline to 1.5000.

The Cable, GBPUSD, Currency Analysis, fx trader, forex monthlyGBP/USD Monthly chart

The pink lines represent the high and the low of the previous calendar year. I use the pink lines to build a bias in price action. As price is trading below major support levels and the annual levels of 2015, price has a bearish bias and I look for shorting opportunities. I also use the monthly chart to look at round numbers, which also act as levels of support and resistance. Round numbers are every 1000 pips. We can see that price is finding support at 1.3000, a level it has been struggling to break through for over 2 months now.

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