Bears Take Hold of Cable
Bears take hold of cable in recent sessions. GBP/USD falls sharply. Selling pressure dominates. This creates strong downside momentum. Traders spot short opportunities in the pound against dollar.
Today’s reversal in cable has once again taken the pair back to the VPOC (volume point of control) support which sits in the 1.5573 price region. This price area is where cable has been rotating since early July, and despite what appeared to be a decisive break away on Monday when cable touched a high of 1.5803, yesterday’s down candle has had the effect of creating a classic two bar reversal. Therefore, no surprise to see the resulting fall in today’s trading session where cable has fallen over 200 pips.
Today’s price action has not only taken cable below the VPOC for the first time since early August but also seen a break through the 100 ma, and with today’s move supported with good volume the next stop for cable would appear to be 1.5424 on the daily chart.
On The Chart
Moving to the hourly chart cable has found some good support at 1.5466, a price point first hit by a volatility candle earlier in the session. And with no follow through cable may simply consolidate from here as the Asian session gets underway.
The hourly CSI chart also gives us a strong clue that this may also be the point at which we can expect a reversal higher for the pair as the British pound (yellow line) is shown as oversold while the US dollar (the red line) is very much overbought in this time frame.
In the current set up for cable there may well be an opportunity to take some pips to the long side, given the extent of today’s fall. However, this will be counter to the bearish sentiment which appears to have taken hold on the daily chart.
Volume Price Analysis for Short Trades
Volume price analysis (VPA) is key when trading short. Look for widening spreads on down candles. This shows increasing bearish conviction. Rising volume confirms sellers in control. Price pushes lower without buying support.
Signs of Bearish Strength
Down candles widen with higher volume. This signals distribution—professionals unloading positions. No volume on bounces warns of weakness. Quantum Accumulation/Distribution indicator on NinjaTrader or MT5 highlights this clearly. Trend Monitor stays aligned for shorts.
Watching for Stopping Volume
Strong downtrends eventually exhaust. Stopping volume appears—ultra-high volume on a down candle at support. This halts the fall. Buyers step in. Potential reversal forms. VPA traders exit shorts or prepare for longs here.
Practical Short Trading Tips
Enter shorts on volume-confirmed breaks lower. Place stops above recent highs. Targets at next support with volume clusters. Anna Coulling’s VPA approach avoids traps—wait for volume validation. Quantum tools make spotting bearish phases reliable.
Bears in control on cable reward disciplined shorts. Volume price analysis turns downside momentum into consistent profits. Quantum indicators guide entries and exits confidently. Stay with the volume for safer trading.