Breaking News
0

‘Tigger’ Phil’s Full Of Bounce, Is Cable Too?

By Faraday Research (Jamie Dutta)ForexMar 14, 2018 08:44AM ET
www.investing.com/analysis/tigger-phils-full-of-bounce-is-cable-too-200297920
‘Tigger’ Phil’s Full Of Bounce, Is Cable Too?
By Faraday Research (Jamie Dutta)   |  Mar 14, 2018 08:44AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Wise-cracking Phil Hammond delivered his Spring Statement with a more optimistic outlook on the economy noting that there is “a light at the end of the tunnel” for the UK’s finances, though Brexit remains a big uncertainty on the horizon. His upgraded forecasts were delivered as advertised though we do note that the severe downgrades to the forecasts in November were only marginally better yesterday.

Sterling reacted positively to the rosier outlook and it is the price action in cable which has caught our eye. The daily candle chart shows that a bull wedge pattern had formed over the last few weeks. This means prices had been consolidating around 1.3850 with the potential for a break higher in line with the dominant longer-term uptrend.

GBP/USD Daily Candle Chart
GBP/USD Daily Candle Chart

Yesterday’s move up looks to have pierced the top of the wedge formation. Interestingly, when we drill down into the shorter time frame hourly chart, we can see that prices have retested that support area which also corresponds to the 50% retrace level of yesterday’s burst higher.

GBP/USD Hourly Candle Chart
GBP/USD Hourly Candle Chart

This means that if we now hold above this zone, price action looks good for more upside in cable. Near-term targets once we get through the recent highs around 1.40 include the February high at 1.4145.

Of course, the Eeyores may have their say in which case yesterday’s break higher could be false and we then revert to range trading. Eyes on the unending US political soap opera plus next week’s EU summit will no doubt impact on direction in the near-term.

Original post

‘Tigger’ Phil’s Full Of Bounce, Is Cable Too?
 

Related Articles

‘Tigger’ Phil’s Full Of Bounce, Is Cable Too?

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email