Cable has had a pretty good run since mid April but how much more can GBP rise?
This is a potential BAT pattern in formation with an entry short at 1.5650 targeting the actual BAT completion area where you could see the price reverse. Sentiment is quite positive on this pair at the moment and I would say any traders that entered long around 1.5450 off the trendline would target the1.5700 area or 1.5800. If the price doesn't reach 1.58 then there may be an increased amount of selling on the way down as traders cover their position.
If it manages to break the lower channel trendline then my target would be the parallel trendline I have drawn in which is equal in width to the existing channel, and the 1.53 area looks promising as a completion of the BAT pattern or perhaps before around 1.52, wherever the price touches the lower trendline.
This is just one of an infinite ways to view this market! Lets see what happens.
This is a potential BAT pattern in formation with an entry short at 1.5650 targeting the actual BAT completion area where you could see the price reverse. Sentiment is quite positive on this pair at the moment and I would say any traders that entered long around 1.5450 off the trendline would target the1.5700 area or 1.5800. If the price doesn't reach 1.58 then there may be an increased amount of selling on the way down as traders cover their position.
If it manages to break the lower channel trendline then my target would be the parallel trendline I have drawn in which is equal in width to the existing channel, and the 1.53 area looks promising as a completion of the BAT pattern or perhaps before around 1.52, wherever the price touches the lower trendline.
This is just one of an infinite ways to view this market! Lets see what happens.