Here's Where I Want To Sell The British Pound
Peter Brandt | Aug 29, 2016 02:21PM ET
Cable's dominant chart construction is the completed 30-year rectangle on the quarterly graph with a target of 1.0345 and .7790 as an outside possibility.
Note, however, that Commitment of Traders data shows specs have an all-time record short position while the commercials have taken record long positions in British pound futures -- a profile not typically consistent with a further downward trend.
I would not be surprised if GBP/USD retests major resistance in the 1.39 to 1.41 zone. Factor is flat. If Cable does rally toward 1.40, I will be watching closely for a selling opportunity in the way of a small topping pattern on the daily chart. There is also a chance -- supported by Friday’s reversal day -- that the daily chart is forming a symmetrical triangle congestion.
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