21 Oct, 15.45 gmt
Well, it has been quite a ride on the cable train. I entered long on 23 September at 1.6054, it went up to 1.6260 (+206 pips) on 1 October, then dropped to 1.5894 on 18 October from where it leapt to 1.6222 on the same day. I have now closed this trade at 1.6148 for +94 pips. One trade in the month, about +8%. Not a bad result if it can be maintained consistently 😉
I am still in the process of settling down in Singapore and don’t get much time to look at the charts. However, looking at the daily chart here, it shows very clearly the break and re-test of the TL up from the 1.48xx lows to the 1.62xx highs. The price has re-tested 1.6260 and failed at 1.6220. This is a very reliable indicator of further downside. I have therefore closed my long and may consider going short. I am also assessing the AUDUSD for a short as it is also at interesting levels.
Here’s a simple chart of the GBPUSD showing the TL break and re-test.