Cable is testing a major resistance level at 1.54300

GBPUSD H4

GU4

Cable has seen a decent bid over the past 3 days after the 50 Fib (Light blue) attracted some solid buying interest from the bulls. If the market can continue to hold above this level a push for the 1.58150 high will likely come in the week ahead.

GBPUSD H1

GU1

However the bulls may have a battle on their hands with the market testing a major 1:1 (Purple) resistance level at 1.54300. If this level can attract some solid selling interest from the bears they will look to target stops back below 1.52500, on the other hand if this level fails to cap the recent run higher this will overbalance the current down trend and put the bulls back in control.

* A 1:1 refers to a current correction being equal in length to a prior correction

Reece Marini is an FX trader and Director of the http://forexhft.com an instant Forex rebate and Signal provider, if you would like to subscribe to our daily reports you can do so here its FREE

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