Cable is currently trading in a loose range between the 1.6000 and 1.6300 areas, having recently tested a break below and above the respective levels. The break above 1.6300 (to 1.6347) brought a pinbar reversal which has subsequently seen price drop as low as 1.5990 on the 9/1/13.
We note that the 1.6000 level has confluence with other technical elements including an ascending trend line and previous daily lows (horizontal prior support level).
Guest post by Nick Simpson of www.forex-fx-4x.com
Price is now once again trading in the middle of this range after the false break under 1.6000 last week and we will be monitoring the price action at range extremities going forward.
We also note that the euro has taken out recent range resistance but cable is lagging EURUSD in this respect; this is reflected in the EURGBP pair which has sterling at a nine-month low versus the euro.
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