The extreme positioning where 6 traders against 1 believed that the GBP/USD was going to trade lower is now less biased.The SSI is still indiating that we will trade higher over next few day's but if it turns postivie i.e. more traders are long than short then we will probably get a drop of 200 pips.
Looking to short 1.6140 area, initial target 1.61, SL 1.6168.... have another order to short in 1.6275 region, target 1.61, SL 1.6310 ... will tweek slightly as I go... all bets off pre NFP / end of asia.
London time or NY time? - on London chart we have 2 dojis on 8h chart - on 4h ichi chart kumo cloud (but kj/tk bearish cross,ss below price) as well as broken upper wedge boundary as a support- very interesting.
1.6211 was .382 fib off the top - this double bottom looks a little bit suspicious to me - and the SSI shift overnight is really impressive - this could be a classic upper TL overshot.
Hey Rick, that is a huge 4-hour doji candlestick. It's telling us that cable has been stuck in a very tight range for four hours. If you go back 6 more candles, you can see that this range between 1.6163 and 1.6215 has held for 28 hours! The following breakout after tomorrows NFP should be pretty big.
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weekly cable chart - should things fall apart tomorrow (wedge with an overshot-top in place) I suspect kumo top (1.6) will not give up easily. 1.6182 extension of the first swing low (today`s top as a correction top) is arround 1.5984. This could be a good place to hedge your shorts.
Stops are suppousedly lurking below 1.615 - 1.613 is an important supp. IMHO
I agree the number is a joke, but it moves markets. We trade currencies. Will you avoid trading Friday because the number is unreliable? Or will you trade because the market is moving regardless of the reason for it?
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