Range Or Breakout Play On The Cable
The GBPUSD pair or the Cable as what people call it in the streets has risen towards the upper part of its trading range. As you can see from its daily chart, the pair is just a step or two from reaching its resistance at 1.6250. If selling persists at this level as it did in the past then the UK pound may weaken against the US dollar and send the pair back to at least 1.6100. An overbought score in its stochastics may tilt the balance for the shorts. In any case, a break above its present channel or a breakout from its rectangle pattern may send the pair soaring towards a pattern target of 1.6600.
Strategy: Looking to short the sterling and long the buck at 1.6250 with a stop loss placed at 1.6290. Will look to reverse our position to long if price goes to 1.6290.
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