Pause in Cable’s Sharp Move Lower
A pause in cable’s sharp move lower offers breathing room. GBP/USD selling pressure eases temporarily. Price consolidates after the drop. This creates potential setups. Traders watch for continuation or reversal.
Last Tuesday’s failure by cable to take out the 1.5818 resistance resulted in a down candle on high volume, which when it was combined with the previous day’s bullish candle on very high volume gave us a two bar reversal (aka a shooting star), and the first signal that cable’s preceding move away from the volume point of control region was likely to fail. This view was also validated by the volume accompanying the shooting star, and by a further clear signal of weakness to come.
Summary
Against this backdrop Wednesday’s sharp 267 pip sell off in cable came as no surprise with the pair also moving firmly below the VPOC to close out at 1.5463 on the session.
The bearish sentiment was cable continued for the remainder of the week, as the pair closed out August 1.5390.
The start of the new trading week saw cable once again come under pressure, on relatively low volume, but this is easily explained as Monday was a national holiday here in the UK.
Yesterday’s Session
And so to yesterday’s trading session where once again cable attempted to rise as the pair hit a high of 1.5408 before falling back once again to close out the session on a down candle with a deep upper wick at 1.5303. Yesterday’s volume was supportive of the bearish picture and in line with the price action.
In today’s trading cable has been attempting to form a base at the 1.5264 price point on reasonably volume. However, this price level also coincides with a high volume node on our volume point of control, not only the daily chart, but also across the faster time frames which is the reason why bearish sentiment for cable appears to have stalled.
For cable the current pause is likely to herald the start of a minor reversal in fortune, as evidenced by today’s candle where (to date) the high volume node continues provide a strong platform of support along with buying volume. Potential upside targets extend from 1.5329 to 1.5339 which need to be taken out for this current reversal to take hold.
Volume Price Analysis During the Pause
Volume price analysis (VPA) is key here. Low volume on the pause signals indecision. High volume bounce suggests buying interest. Quantum Trend Monitor on MT5 or NinjaTrader highlights alignment. Look for accumulation at lows.
Trading Implications
Pauses like this test patience. Bearish continuation favours shorts on breakdown. Bullish reversal needs volume support. Anna Coulling’s VPA approach avoids traps—wait for confirmation. Quantum indicators spot subtle shifts early.
Cable’s pause after a sharp lower move builds tension. Volume price analysis with Quantum tools turns it into an opportunity. Stay disciplined for the next clear signal.
Why GBP/USD Is Called “Cable” in Forex Trading
GBP/USD is one of the most traded forex pairs. Traders call it “Cable”. This nickname has deep history. It dates back to the 19th century. Understanding it adds context to trading this volatile pair.
The Origin of “Cable”
The term “Cable” comes from the transatlantic telegraph cable. In 1858, the first undersea cable linked London and New York. This allowed real-time exchange rate quotes between British pound and US dollar. Before, rates arrived by ship—weeks delayed.
By the 1860s, reliable cables transmitted prices instantly. Traders in London and New York used “cable” rates. The nickname stuck. GBP/USD became “Cable” forever.
Why It Matters for Traders Today
Cable remains highly liquid. London session drives early volatility. GBP reacts to UK data and BoE. USD to Fed and risk sentiment. This creates sharp moves. Volume price analysis (VPA) spots conviction—high volume on spikes confirms direction.
Quantum currency strength indicator ranks GBP live. Matrix shows relational extremes vs USD. These tools make trading Cable reliable.
Practical Insights
Cable’s history reflects its importance. Watch London/NY overlap for momentum. VPA confirms—high volume rallies show buying. Low volume spikes warn of traps.
Anna Coulling’s VPA approach with Quantum tools turns Cable’s volatility into disciplined trades.
GBP/USD’s “Cable” nickname honors its pioneering past. Quantum indicators make trading it modern and reliable.
By Anna Coulling
Creator of Volume Price Analysis