* Cable remains within a downtrend from the 1.6380 high to at least 1.4705
* The momentum loss (reflected by consolidation) is therefore merely a delay a later break down.
* However, Cable is notorious for doing its utmost to take 'weak' positions out before doing the obvious. We are long looking to sell as the market goes bullish.
Cable remains within a downtrend from the 1.6380 high to the 1.4705 1.618 multiple target to end a likely third wave.
The current consolidation (the bulk of which resides) in a 1.50-1.52 range with a 1.5075 pivot is therefore a holding pattern before it breaks lower.
But following a five wave rally to 1.52, Cable has maintained what we believe one of its favorite patterns or corrections…the irregular. So having spiked down to new lows of 1.4965, we squared shorts and bought for what would a repeat of January 9th and February similar times of month…a recovery now back through 1.5075-80 to signal not just 1.5200-20 again but potential for 1.5315 the 38.2% retracement but also the C=1.618A.
Until then we have to allow for slippage to that niggling 1.4945 5=1 target but provided it doesn't break 1.4890 stops then we will look to cover 1.52 and sell the spike with 1.5475 stops.
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