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Cable: Range Bound + Price Compression

by Rafael Rosa on November 8, 2010

Cable is in a tight spot right now. While the Euro-Dollar rallied from the 1.3890s to the 1.3940s, GBPUSD has sat in its daily range. The squeeze juice in the market was not enough to break the 1.6155 near-resistance in Cable.

Pound Dollar is in a range between 1.6118 and 1.6155. It is also experiencing price compression, as suggested by the triangle formation on the hourly chart. Thus, it seems like the range break will have significant power behind it  as the price compression explodes.

Cable Range 2 Cable: Range Bound + Price Compression

I have no bias in the pair right now, besides playing the range and the breakout. Yet, I do keep in mind that the US Dollar is gaining some strength across the board.

To get me bearish on the pair, I need to see a daily close below the 1.6090 level (which is below the 1.61 level, & below the support line from the Aug 6th high and Oct 14th high). Until then, it’s a free for all.

Technorati Tags: analysis, cable, cable forecast, cable range, GBP/USD, pound dollar, price compression, Technical Analysis

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