Having bottomed out on 23 Jan 09 Cable has been on a pretty relentless rise, but from my perspective that rise is finally starting to peter out ... or at least pause for breath. Allow me to explain....
This Daily chart shows trend line that the pair has been trying tokeep pace with. Latterly you can see it starting to fall away - preceded by dwindling MACD momentum.
On this 4H I have drawn a second, less steep, support line that would be the next natural support for it to fall to.
Moving to the Tactical chart, I see that this support line is coincident with the 1H 800 sma (shown in Yellow) ... Which Tom and I like - a lot.
So, when does one climb in ..... ?
Okay, so we'll be selling a convincing 1H close below the nice pink support line, and targetting the 1H 800 sma as dynamic support (.. actually, it wouldn't surprise us if the pair got down to 1.48 in fairly short order...). With respect to a Stop Loss, a close back above the 1H 62 ema would destroy our confidence w.r.t our timing and,therefore provoke an exit.Just a thought... R.
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