GBP/USD: Bullish Double Base Now Worth Exploiting
Carol Harmer | Nov 20, 2014 04:17AM ET
Cable has double based at 1.5590. This is a bullish sign and therefore one that we want to exploit, especially as the market has turned bullish on the stochastics and RSI too. There's a good chance today that Cable will trade higher. This base pattern has been the first pattern we have seen that suggests a rally, so this cannot be ignored.
We do have the trendline evident at 1.5735, so the 1.5745/52 area needs to be broken in order to enable the market to move forward to a great extent If this can happen, there is scope for the market to trade higher and we would be looking at 1.5775/85 as a short term objective. Cover longs to here; Reinstate further longs above 1.5775 as a break above this area will see further strength emerge for 1.5815/25.
Failure to make the break higher does leave us under slight pressure for 1.5620/1.5590 once more, so cover any shorts to here. Remember to set stops below 1.5565.
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