Despite Carney’s comments that U.K rates could be cut, Cable advanced north yesterday following a whipsaw through both H4 demand at 1.4204-1.4231 and psychological support 1.4200. This, as can be seen from the chart, saw the pair rally over 150 pips, breaking above psychological resistance 1.4300 and colliding into H4 resistance coming in at 1.4351.
Due to this recent advance, price is seen teasing the underside of a daily supply zone at 1.4445-1.4360, which wraps itself around a weekly resistance level drawn from 1.4429. As such, a sell-off from the 1.4351 H4 resistance is possible in our opinion. However, for us to short this pair, we would want to see price connect with H4 supply seen above at 1.4445-1.4409. Not only does this beast sit within the extremes of the aforementioned daily supply zone, it also encapsulates the weekly resistance at 1.4429 and houses a H4 Harmonic AB=CD bearish completion point at the upper end of the H4 supply at 1.4446.
Given the above confluence, our team has placed a pending sell order at 1.4406 with a stop set above at 1.4477. Granted, this is a rather large stop and the reason for this is to avoid a fakeout above the AB=CD completion point.
Due to this recent advance, price is seen teasing the underside of a daily supply zone at 1.4445-1.4360, which wraps itself around a weekly resistance level drawn from 1.4429. As such, a sell-off from the 1.4351 H4 resistance is possible in our opinion. However, for us to short this pair, we would want to see price connect with H4 supply seen above at 1.4445-1.4409. Not only does this beast sit within the extremes of the aforementioned daily supply zone, it also encapsulates the weekly resistance at 1.4429 and houses a H4 Harmonic AB=CD bearish completion point at the upper end of the H4 supply at 1.4446.
Given the above confluence, our team has placed a pending sell order at 1.4406 with a stop set above at 1.4477. Granted, this is a rather large stop and the reason for this is to avoid a fakeout above the AB=CD completion point.
IC Markets is an online forex broker specialized in providing transparent trading solutions to both retail and institutional investors alike. We provide superior execution technology, lower spreads and unrivaled liquidity.