It is hard to fathom, especially after the mixed GBP data that continues to trickle through, but the Cable is hanging on near 1.60 and even looking bullish as it sets up in a bullish descending wedge.
G/U daily:
Any bullish Cable breakout from this wedge pattern would most likely be quite choppy. The daily chart above shows potential resistance from previous trend lines and EMAs and the Ichimoku chart below shows some Cloud resistance ahead as well:
G/U daily Cloud:showing some resistance ahead of any bullish trend line breakout:
There is still a lot of high impact data to come for this pair this week with GBP interest rates and USD NFP being key of these. Any developing USD weakness would help to bolster this pair though and can’t be ruled out.
Summary: watch for any wedge trend line break or a clear bearish rejection of 1.60 after both GBP interest rate and NFP news this week to best gauge Cable momentum.
What is the next level in AUD/USD after breaking the level of 86.50? My calculation of fibonacci level of %50 is 85.50. Is that a possible bounce up level?
Yeah…85.50 might give this pair some pause or bounce. But a weekly close below 86.50 screams 80 cents ….IMHO.