By: Adrian Friggieri
Cable has been trending up again since beginning of June this year after a sharp fall from 1.5400 region to the impressive bottom reached around 1.4280.
The rebound from 1.4280 to 1.5940 was inevitable as the price of money was moving against other major currencies but now we are seeing that the uptrend is possibly halted itself. As you can see in the chart the price is now ranging from 1.5687 to 1.5539 for the last days and still not showing clear direction on the next major movement. This consolidation time is very important and it is giving strength to the pound again after such a volatile period.
Needless to say that cable is a very volatile pair and trading it one must get used to its daily 150 to 200 pip movements. Of course that is your profit call, looking to catch those daily movements.
It is possible that it found big support and buyers have been waiting always at the 1.5535 region so it has always pushed up pair but again always reaching a great resistance at around 1.5690.
News has proved not to always push the price much lately and this might also be due to the holiday period as a lot of traders are still on holidays and major market movers might not be on the floor as yet.
So possibly we might still see this consolidation or ranging for a few more days than when all the traders come back to the floor we can expect a major move. Again till now it is very unclear to its direction.
