Guest Commentary: MarketVisionTV - GBP - How to Milk a Bull Market?!
Cable has rallied strongly from the 23.6% retracement of 1.5730 to confirm two clear observations. Firstly that it has likely entered the fifth and final leg from 1.5235 and secondly that it has become a model trendline currency which is worth focusing on. Not only did it respect the rule of three by holding the 1.5730 third trendline from the low but it is also honoring the former channel support now as resistance and a potential parallel resistance line. What this suggests is that minor 1.5930 will probably cap short term for 1.5870-1.1.5930 consolidation but as 1.5830 now holds Cable should spike up to a 5=1.618 of 1 objective of 1.6000 to end a five wave rally from 1.5730 and potentially 1.5625. From there or a loss of the third trendline support now at 1.5790 coinciding nicely with the former 1.5780 hgih for a return to 1.5640/1.55. Any further strength than this trendlines parallel currently at1.6030 would risk extension to 1.6130 the C=A.
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By Ed Matts, MarketVisionTV.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.