Seven Days Ahead offer financial and commodity market forecasting, technical trading analysis, forex forecasting service, stock market trading recommendations, guides and strategies in the UK.Sign up now

How far can Cable go?

15 August 2008

The Technical Trader’s view:
We have been short Sterling long Dollars in our Key Trades portfolio since 11th August at 1.9196. Since then the Dollar has strengthened mightily. But how far can it go?

The market has failed to hold above the 2.005 High from 1991.

Moreover, the supportive High from 2004 has broken.

The long-term case for stronger Sterling is under threat.

First long-term support lies at 1.7365.

The detail of the market shows a number of alternative explanations for the sell-off.

It may either be a complex Head and Shoulders Top which completed two weeks ago.( Minimum move to 1.75)

Or a continuation Triangle which completed at the same time.(minimum move 1.84)

Each has a different measured move.
The triangle has almost achieved its measurable move. And the 61.8% retracement may be acting as good support at 1.8624 much as the 50% retracement @1.9115 forced a pause higher up.

But the significance of the medium-term chart breakdown suggests that, though there may be a pause at these levels, the market has no real support of consequence until 1.7375. We remain bears.

Mark Sturdy
John Lewis
Seven Days Ahead

[For the complete and illustrated version of this and future Updates be sure to sign up at]

Receive three Market Updates fully-illustrated with charts each week for one month FREE

Next story:
Are Gold bulls back on track?

Previous story:
Has the Dollar turned?

< Back to menu

Financial Market Forecasting | Bonds Technical Trading Analysis | Commodity Specialist Guide | Daily Indices Guide | Technical Trading Guide UK |
Site Map | SEO Services | We're listed in the UK Business Directory