Cable: 1.56400 support attracts solid buying interest

GBPUSD H1

GU1

I mentioned in my previous Forex report that day traders would likely be closely eying support at 1.57000 and 1.56400. The 1:1 (Purple) support at 1.57000 saw strong buying interest during Fridays trading session but the market failed to take out the 1.58130 high which saw the market close near the lows of the day.

During late US trade on Monday the market tested the 1:1 (light blue), 23.6 and 38.2 Fib at 1.56400 with some interest seen at the support level, Asian traders tested the support level for the second time with the 1:1 still attracting buying interest, the market is now 20 odd pips above the 1:1 support.

Build a long position around the 1:1 (Light blue) looks to be the best play in my opinion with a tight stop at 1.56050.

* 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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