The pick of the day is Cable, forex geek name for the British pound as it dances with Ms. USA. As I predicted last week, GBP/USD’s price started to fall, in fact, it has been on a free fall since I last talked about its dancing move. On the 8-hour dance floor, the pair appears as it is completing wave 3 of 5 Elliott bearish impulsive waves.
On Friday, it broke a well-defined uptrend on the daily dance floor, forming a double-top pattern. It is currently attempting to break the neckline of the pattern at 1.63185. As an Invest Diva graduate, you should know that this pattern is only confirmed if the pair opens below the neckline in the next trading session.
On the monthly chart, the pair is still struggling to break a hard-core resistance level at 1.67435 and with the recent fall in the price, we may not see a break above this level anytime soon.
On a daily basis, resistance is seen at 1.66382, and support at 1.62292.
Touching a bit on the fundamentals, looking to this week, we’ve got a fairly busy schedule. Notable US data posts on just about every day of the week, with traders hoping the numbers are good enough to make up for the Fed reducing their asset purchases. Non-Farm Payrolls on Friday will be the big number that the US market focuses on.
Later in the week the Bank of England will announce any changes to its policy, so that could be a good time to look for technical confirmation.
Stay tuned for more updates and don’t forget to check in with all points of the Invest Diva Diamond, namely the technicals, fundamental news and market sentiment, before you make a final trading decision!