ZuluTrade Blog

Market View

Will Cable's retracement give another bullish setup?

Friday, September 6, 2019 11:59 AM GMT

As Uk’s Parliament is in a deadlock, with Members of Parliament effectively passing a bill that prevents Boris Johnson from committing a no-deal Brexit but at the same time rejecting his bid to resort to snap elections, a potentially rewarding set-up is formed at the GBPUSD pair.

Remember that in all Bank of England’s press releases, following this year’s monetary meetings, the assumption has been that the UK will find a deal that would determine its trade relations with the EU, and that we will not come up to a hard Brexit.

Reviewing the broaden technical picture of Cable, the pair gave a strong daily reversal formation including a positive MACD divergence, a hammer candlestick and a failure swing. The price was exploded to the upside and the pair managed to break out the mid-term downside channel to the upside.


Heading to the hourly timeframe, we may speculate a potential retracement scenario as markets usually prefer to validate the significant trend reversals. Though it may never happen if bulls are in full control. Therefore, bulls may have a potential buying opportunity near to the violated channel’s upper side and the Fibonacci area (23.6 – 38.2%).  On the other hand, if the price goes below 50% or 61.8% (major support) of Fibonacci then this scenario will be busted.



The views expressed do not constitute investment or any other advice /recommendation /suggestion and are subject to change. Reliance upon information in this material is at the sole discretion of the reader. Opinions expressed in the report do not represent the opinion of ZuluTrade Social Trading Platform and do not constitute an offer or invitation to anyone to invest or trade.

Comments are closed

Trading spot currencies involves substantial risk and there is always the potential for loss. Your trading results may vary. Because the risk factor is high in the foreign exchange market trading, only genuine "risk" funds should be used in such trading. If you do not have the extra capital that you can afford to lose, you should not trade in the foreign exchange market. Forex Brokers and ZuluTrade are compensated for their services through the spread between the bid/ask prices or there may be a cost to initiate a trade through the bid/ask spread. Signing up is totally free, and there is NO contract and NO monthly fees, ever.

This blog is for informational purposes only. This blog is not intended for distribution channels and may not be reproduced or distributed without the permission of Zulu Trade ltd or any of its affiliated entities (“ZuluTrade”). All opinions, news, prices or other information contained in this blog are provided as general market commentary and this report does not contain and it is in not to be considered in any circumstance as market analysis, offer or solicitation to buy or sell any financial instruments, personalized or general recommendation for any investment decision or investment strategy by ZuluTrade, in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. The information contained in this blog should not be construed as financial or investment advice on any subject matter. The financial instruments referred to herein may not be suitable for all investors and any investments on such financial instruments requires the assessment by each investor and its counsels of the investor’s investment characteristics, including the investment risks which the latter is willing to assume. This blog has been based on information which has been made public, obtained from sources believed to be reliable, but it has not been verified by ZuluTrade. No representation or warranty (expressed or implied) is made as to the accuracy, completeness, correctness, timeliness or fairness of the information or opinions herein, all of which are subject to change without notice. No responsibility of liability whatsoever of howsoever arising is accepted in relation to the contents hereof by ZuluTrade or any of its directors, officers, employees. Further, no representation is being made that any results will be achieved, and past performance is not indicative of future performance.