The pick of the day is Cable, forex geek name for Mr. British pound as it dances against Ms. USA, ahead of Monday’s manufacturing purchasing manager’s index (PMI) in the UK. We have been bullish on the pair and the uptrend remains in force. On the weekly dance floor, the pair has been testing to break above a resistance level at 1.67 which dates back to the highs of 2011 and 2009.
On the daily dance floor the pair remains above the Ichimoku cloud, with the RSI having yet to approach the over-bought zone, not showing any reversal sign. Our bullish targets are 1.704 and 1.74. However a downside breakout of 1.62 could drag the pair down to 1.587 and 1.56 in extension.
If you have an open position don’t forget to loosen up your stop and limit before the market close to avoid getting kicked out of your trade on a false market-open jump or drag.
Stay tuned for more updates and if you feel like you’re lost in translation with this report, come one over to InvestDiva.com and check out our straightforward and easy education program, and of course, have a great weekend everyone!