Spread betting on currenciesShort term outlook currency spread bets: focus on Cable[Posted on Sunday 02/08/09]The currency markets look set for some strong moves over the next few weeks. In the currency market analysis presented in the Market Timing Update sent out to subscribers on Wednesday evening (29th of July), I noted that there had been a real improvement in the technical evidence and highlighted that the medium term outlook had become more positive. I concluded that analysis by stating that while things looked more bullish for the Cable, only a resolution of that long-running flattening top pattern either way would indicate that a new position was called for. In other words, we expected a break above the upper horizontal resistance around 1.6580–1.6620 to lead to further upside while a breach of 1.6250 would herald a deeper selloff.
Well as things stand, last Friday’s move of 216 pips gave us the break we had been awaiting. That strong move took the Cable to 1.6718 and now suggests further upside for the GBP.
Upside price target areas: 1.6850; 1.7020–1.7050; 1.7250 As things unfold, more time-sensitive analysis would be presented in the Market Timing Update which details effective short term spread betting strategies.
Have a great week in the markets, Alex. P.S.:To be the first to read the next free market analysis, sign up for the Free Spread Betting Opportunities Newsletter.
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