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The Technical Case For Why I'm Bullish On Great Britain

ByPeter Brandt
Published 11/20/2013, 04:12 AM
Updated 07/09/2023, 06:31 AM

The Charts Suggest that a Major Advance Could Occur in the Cable and FTSE

Charts do NOT predict the future. Charts simply allow for possibilities. The charts presently allow for the possibility of a massive advance in the stock market and currency of Great Britain.

The cable has traded in a range of $1.35 to $2.00 since 1987 and a much tighter range of $1.4000 to $1.6740 (weekly closing basis) for the past five years.
Cable_Quarterly
The weekly chart displays a possible 5-contact point coiling triangle. This triangle would be completed if cable can close convincingly above 1.6750. Such an event could make possible an advance to $2.0000.
Cable_Weekly
The daily Cable chart displays a 9-week rectangle or box pattern. A decisive close above $1.6250 could be the ignition for the completion of the weekly chart triangle.
Cable Daily
The FTSE presents a quite dramatic story. This benchmark index has been turned back from the 6800 to 7000 zone three times since 1999. A strong advance over this resistance level could usher in a significant advance in U.K. equities. The charts would indicate a possible target in the area of 9500.
FTSE Monthly
George Soros postnote:
There is much historical reference to when Geroge Soros took the Bank of England out behind the wood pile. So I thought I would include the chart of the trade that made Soros a billion pounds. Cable topped at $2.0100 on September 8, 1992. Over the next 11 trading days Cable dropped to $1.6764 and then to $1.4063 by February 1993.
George Soros' Cable Trade
Disclosure: The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer..

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