Cable Monthly H&S - Wait for Bounce

13 thg 8, 2016

There is a clear head and shoulders pattern complete on the monthly chart for cable. Instead of shorting the pair immediately, I'd rather sell it from the 1.6 area to create a higher R/R and minimize risk. If we see a monthly pinbar for August I will be buying the pair up to this level on the 1-4 hour TF. There's an overage of pessimism surrounding the GBP at the moment and any buying pressure may trigger a swift and powerful bullish impulse. The missed pivots above price may pull the pair toward the sell limit level and add to the bullish bias after month end.