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1/12/14 Cable breaks ascending triangle formation last week but bulls are short lived as GBP/USD attain 1.5600.

1/12/14 Cable breaks ascending triangle formation last week but bulls are short lived as GBP/USD attain 1.5600.

dollar, Pound, Sterling, Pound Sterling, Sterling Pound, GBP, GBP/USD, GBP/USD Forecast, GBPUSD analysis, GBPUSD outlook, GBPUSD technical analysis, Bank of England, BOE, Mark Carney, U.S Dollar, USD, GBP/USD outlook, GBPUSD forecast, GBP/USD projections, GBPUSD projections, MPC, monetary policy committee, forward guidance, asset purchase facility Cable fell for 5 months and has dipped below the 1.573 support, with the next crucial support price on the Monthly charts at 1.531.

dollar, Pound, Sterling, Pound Sterling, Sterling Pound, GBP, GBP/USD, GBP/USD Forecast, GBPUSD analysis, GBPUSD outlook, GBPUSD technical analysis, Bank of England, BOE, Mark Carney, U.S Dollar, USD, GBP/USD outlook, GBPUSD forecast, GBP/USD projections, GBPUSD projections, MPC, monetary policy committee, forward guidance, asset purchase facility The last time 1.573 was crossed it was part of the bullish trend that broke the price level during September 2013. We have encountered this price as a support back in 2009 and 2011.

dollar, Pound, Sterling, Pound Sterling, Sterling Pound, GBP, GBP/USD, GBP/USD Forecast, GBPUSD analysis, GBPUSD outlook, GBPUSD technical analysis, Bank of England, BOE, Mark Carney, U.S Dollar, USD, GBP/USD outlook, GBPUSD forecast, GBP/USD projections, GBPUSD projections, MPC, monetary policy committee, forward guidance, asset purchase facility Falling back down after retracement to the downtrend line of lower highs has seen Cable break the 1.574 level of the downtrend Fibonacci extension 127.2% towards the previous low of 1.558.

dollar, Pound, Sterling, Pound Sterling, Sterling Pound, GBP, GBP/USD, GBP/USD Forecast, GBPUSD analysis, GBPUSD outlook, GBPUSD technical analysis, Bank of England, BOE, Mark Carney, U.S Dollar, USD, GBP/USD outlook, GBPUSD forecast, GBP/USD projections, GBPUSD projections, MPC, monetary policy committee, forward guidance, asset purchase facility Markets traded lower during the time of writing and a breach of 1.5600 psychological price is likely to see 1.552 support tested next before possible reversals.

Broker of the month

Without an oversold signal as of the time of writing and the bearish momentum is strong as seen on the H4 ADX indicator, going against the falling Pound Sterling is not a rational choice. Manufacturing PMI today and Construction PMI tomorrow will be the main determinants of how Cable will move for the start of the week, with estimates falling slightly from the previous month. Wednesday’s Services PMI may give rise to a temporary respite for the bearish sentiment but the Office of Budget Responsibility’s Autumn Forecast will be a look back and a preview of the coming year and is likely to cause some volatility. Bank Rate and Asset Purchase Facility votes on Thursday is likely to have no changes with a neutral at best out look and may excite short term traders to speculate on the volatility associated with these announcements. The week for Cable ends on Friday after the U.S Non Farm Payrolls that is expected to increase, with the Consumer Inflation Expectation slight before that a key consideration for traders reliant on the U.K fundamentals.

Trend Direction
S3
S2
S1
R1
R2
R3
Entry
Stop Loss
Exit
 Slight bearish  1.55 1.552 1.5600 1.564 1.567 1.574

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.

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