CABLE NOW AND BEFORE FED HIKE December 14th

[donaldprice]

Because Cable seems to react mostly to Brexit News and Dollar Index in general, i would be looking at the current bullish trend as no more than a deeper retracement. No matter what anybodies politics are the general consensus is that Brexit is now and will most likely continue to cause uncertainty for the UK economy. Therefore if we start seeing a slump in upcoming UK numbers and more news from the brexit front, then i would assume that selling pressure will again prevail.

The Supreme Court Judges are unlikely to rule on the Article 50 case before Christmas.

They will hear four days of evidence from the 5 - 8 December and then retire to make a decision about what happens next. 

 

Technicals: From a technical stand point i have been observing this decending trend line from March to now that has been acting as resistance. From what i can see as a most likely outcome that we are in a Wave 4 before heading again down. We could continue to see some more dollar weakness which would give some respite to AUD, EUR GBP and EM currencies before the Fed meeting. Therefore i would like to stand aside for now and just patiently await a good high probability entry point.