There is a strong possibility that the pair will test the resistance trend line of the red triangle it broke out above, which has now turned into a strong support zone around 1.2550 – 1.2530 on the weekly time frame.
This expectation is confirmed by the flag that is developing at the moment and can be seen clearly on the smaller time frames.
What will happen next depends largely on the results of the snap general elections in the UK on 8th June, and there is little over a week left until that time.
In the alternate scenario the pair will try to test the resistance at 1.3050 immediately, but in my opinion it’s not very likely to break out above it right away.
As it is I think the latter scenario is less probable at the moment.
The UK election and Brexit will be the key that drives cable.
ReplyDeleteIt all depends on the fundamentals.
ReplyDeleteExcellent analysis as always!
ReplyDeleteGood post!
ReplyDeleteGood take on markets, really insightful.
ReplyDeleteGood insight.
ReplyDelete