GBPUSD: Cable volatility to continue leading into the Election (May 7) by FX Charts Daily

Cable had a choppy Friday session in finally taking out the resistance in the 1.4970/1.5000 area, triggering stops to squeeze up to 1.5052 (50% of 1.5551/1.4565) before once again falling back into the consolidation area and finishing at 1.4960.With the Election approaching (7 May), and the result being anyone’s guess, it looks as though the price action is going to remain extremely whippy so a very nimble stance is required.

While the dailies do still point higher, the shorter term charts appear to suggest that we might see a bit of a dip today, where buyers would arrive at 14915 and 1.4900 (both minor supports) and then at 1.4865 (daily Kijun and Fibo support (38.2% of 1.4565/1.5052)) and then towards the 100 HMA at 1.4820 and the 200 HMA at 1.4780 but seems unlikely to be seen for  a while.

Back above 1.5000 and Friday’s 1.5052 high would head on towards 1.5100 (daily cloud base) and beyond, towards the 9 March high at 1.5136 and then next Fibo resistance at 1.5170 (61.8% of 1.5551/1.4565). This will be a very strong area of resistance, if seen, also being the top of the long term descending channel and the larger degree of Fibo resistance (23.6% of 1.7191/1.4565).Buying dips seems to be the way to go, but keep stops tight below 1.49, or below the Kijun (1.4865).

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