Cable could hit 1.70 this year…

Kevin Burton 75The GBP/USD pair has seen the pound strengthen in the past few days with it challenging the 1.68 figure once more. I have long held the belief that we should see cable hitting 1.70 at some point this year and it’s possible it may be gearing up for a move to that level.

 

The chart below shows the daily timeframe with a channel I’ve put on. Should cable break the highs, the logical next level for price to head towards would be the upper channel line which currently coincides with that 1.70 figure.

 

Markets rarely make our jobs easy and the fact we are seeing cable at 1.68 means it could just as easily be rejected here, but I am always mindful that unless we see the lower trend-line broken, that upside channel line will act like a magnet to price.

cable

Should indeed that lower trend-line be broken, measure the depth of the channel and that could give an eventual projected downside target. Until proven otherwise, watch to see if cable breaks higher.

Read more from Charlie Burton.

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