Cable Bears Take Early Lead Traders had to admit that another...

Cable Bears Take Early Lead

Traders had to admit that another weekly close above 1.6000, despite the breakdown to 1.5770 midterm support, was bullish. However the failure at 1.62 hinted that bears were still around. The failure at 1.6150 became an early confirmation that shorts were indeed on the right side of the trade.

Today's break of 1.6050 was key. Today's hold above 1.6000 is natural reaction to the major psychological level. So a bounce could happen back towards 1.6100. At this level, we watch if new shorts will show themselves for the bigger move towards 1.5750. 1.5950 is the first level of support to contend with. We've seen plenty of action there last week making this the week's target to the downside. Momentum goes to the one who can break and hold. Bullish above, bearish below. News this week can rock this either way but today's Monday action has yielded nicely for last week's bears.

1.5950 is key to the downside going into Tuesday's Bank of England meeting minutes release. The market is obviously biased bearish on the BoE considering the trend of the last 6 months. With FOMC out of the way, traders are free to put their attention back on the inaction of the BoE. Trade what you see.