* Approaching the End of an Expanding triangle
* 1.6170 is major resistance but History suggests one more Spike!?
* Our Trading Strategy is designed to cater for this dilemma.
Cable remains within the expanding blowout..the end of the broader rally and therefore close to renewed medium term weakness.
Although the test of the 1.6140-70 resistance area has failed the issue is whether we have seen the top.
Certainly the spike to a marginal new high of 1.6170 is enough to satisfy a trend sequence from the 1.5820 low and therefore the entire C leg to end the expansion. As such the current drop should pan out in a trend sequence down to the 1.6030-50 target area outlined in the last two days videos before a corrective rally to 1.6125 the 61.8% before break down through 1.5985 to confirm and accelerate weakness beyond 1.58.
However the analogy with last year would place Cable on April 26th and therefore suggest a spike below 1.6070 also into 1.6030-50 will be enough to end an irregular correction for a rally also back to 1.6125 but with potential to spike 1.6170 stopping out shorts and getting the market long for the C=A target of 1.6245 possibly 1.6285.
Our strategy remains the same.. having squared longs and bought puts at 1.6140 we will buy cash as a hedge on this drop looking to sell this out and venture short either or on new highs or below 1.5985. Stops 1.6310.
Further videos or commentaries are available from www.MarketVisionTV.com or @EdMatts on Twitter
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