Cable preparing to test 1,6800 once more

June futures contract - GBP/USD
June futures contract – GBP/USD

The last few days have once again seen Cable test the 1.6800 region, only to fail and reverse once more, with the June futures contract currently trading at 1.6710 on the daily chart. Following the strong gains of last week, which saw the pair surge higher with three wide spread up candles, the first sign of possible short term weakness appeared on Thursday with the doji candle.

This weakness was duly confirmed with a pivot high, as the pair reversed lower and failing to breach the strong resistance now in place at this level. Today’s price action however, has suggested that the move lower is simply a short term pause point, further confirmed with the selling volumes of the last few days, which have been falling in a falling market – always a sign of weak move.

Provided the contract closes around the 1.6712 level this evening with the current deep lower wick to the body of the candle, then expect to see Cable return to test the 1,6800 region once again in the next few days, and if this level is breached, this will then put in place a strong platform of support for a sustained move higher in the longer term.

By Anna Coulling

About Anna 1055 Articles
Hi – my name is Anna Coulling and I am a full time currency, commodities and equities trader. I have been involved in both trading and investing for over fifteen years and have traded many different financial instruments, from options and futures to stocks and commodities. I write and publish articles ( mostly for free ) for UK and international publications on a wide variety of financial issues, and in particular I enjoy helping others learn how to invest and trade.

2 Comments on Cable preparing to test 1,6800 once more

  1. Hi Anna. Great analysis. Spot on!. Market headed up this morning and a re-tested the recent high above 1,6800.

    I am reading your books at the moment (about half way through the VPA book) and appreciate your work a lot. In my MT4 platform (Alpari) the view in regards to the volume is not a clear as it is in your screen shot from NinjaTrader and the June Futures for GBP/USD. I kind of do see falling volume (tick activity) when the market went lower before the re-test but the difference between the bars is not very big. Seems like a good idea to try out the NijaTrader platform and look at the charts there while I am going through the VPA book.

    Best regards, Anders

    • Hi Anders – many thanks for your very kind comments which are much appreciated and delighted you are enjoying A Complete Guide To Volume Price Analysis:) The beauty of VPA is that it can be applied to any market in any timeframe, and the only requirement is volume and price. If you are proposing to trade currency futures, then the NinjaTrader platform with the Kinetick data feed is an excellent combination to use. In addition, they also offer something called the CME waiver program, which gives you the option to avoid exchange fees, provided a brokerage account from their supported list and log in to the feed and account simultaneously at least once a month. I use Interactive Brokers for all my own futures trading, but there are many others to choose from and the Kinetick data feed is excellent and the one NinjaTrader recommend themselves. They do offer a free End of Day feed I believe which is limited but will give you a feel for the platform and feed.

      It was certainly a nice trade on Cable today, but be careful as it appears to be running into resistance yet again at the 1.6800 level. If it breaks above, then a solid platform will then be in place for a further move higher, but only if it clears this level convincingly.

      All best wishes and thanks again and hope the above helps a little – kind regards Anna

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