Cable continues to build bullish momentum
For forex traders in London yesterday morning, eurozone PMI and UK retail sales were the main items of fundamental news. And it was Cable again which provided us with some important trading lessons.
The first was how we need to be aware of positioning ahead of any major news release. In the run up to the retail sales number, Cable had been basing around the 1.4920 support platform, having come off the 1.4975 high of the previous evening, thereby creating the start of what looked to be a down candle.
However, as always is it the daily chart which is so important, providing us with a more macro view of any currency pair, and here Cable has been very bullish since bouncing off major support in the 1.4898 region.
Just ahead of the news Cable started to move up, and with the release the usual volatility occurred, which triggered a candle with a 56 pip spread - taking out both longs and shorts!...