CABLE's Assertive Price Action Continues Counter-Trend

A mix reaction from the #USD Index still above the 100 levels didn't do as much in spite of the jobless claims positive #'s. This shows that there is barely any incentives for now to push the USD higher beyond its current 103.55 level of resistance simply based on Price action.

Likewise, on the higher band, this is supported by a negative divergence then from its high, that resulted making these lower prices as technical self-adjustment period that provided the USD to align well with its foreign counterparts over a period of time. 

The 100 basis point level serves as an initial support with a slightly traded low @99.43 have extended its range between these prices as the corrective phase continues to do so.But with the recent price recovery. Although, CABLE's corrective phase may well have paused as it recovers from a low @1.2346 and is maintaining above the 1.2500 levels. For as long as the USD direction fails to ignite fresh incentives for a momentum run, Cable's ability to continue its current pace of price recovery would continue to do so. Let's watch when it tries again to reach above the 1.2673.

Note: Even when prices do recover, it is well within a major trend direction until such time that Cable makes certain new highs to confirm that the previous opening gap lower was indeed a true trend reversal from a mere price reversal focal point. But the 1.1989 to 1.2500 range is not too bad for a trade position for now. Therefore the prices to watch on the way up would be defined as it does move to that direction with the presence of volume and momentum. However, afain never discount any sudden drawbacks in certain cases where markets are as thinly traded and can go in either directions.

Cloud Chart GBPUSD