cable plan next week:

buy limit around 1.9760 to 1.9795 or buy stop around 1.9890 to 1.9900,stop loss below 1.9700,minimal profit 2.0070,2nd profit 2.0275 max profit 2.0465.

Story:

Strong bounce cable on last friday indicate the upside is still in progress,breakout 1.9930 is needed to accelerated the momentum,while smaller timeframe should retrace a bit it's possible above 1.9700 zone,breakout 1.9680 would change this plan and more downside could be seen for pound.ok trader,trade your plan and protect your capital with stop loss,do your best money management and goodluck;)

Story of the chart

• cable formed bearish butterfly pattern,it's should complete around 1.27%fibo if extreme could reach around 161.8%fibo zone
• reversal harmonic pattern
• doji candlestick pattern,means price should retrace or reverse with confirmation break out 1.9890
  
• following 2bear candle

trading strategy

sell at market price,top loss 2.0 1st target 1.9890,2nd 1.9830,3rd 1.9730

in case price break 2.0 then bearish butterfly pattern could extend toward 161.8% around 2.0070 to 2.0100 before retrace or reversal.

2nd option,don't place stop loss after sell but place buy stop around 2.0 toward 2.0070,adding more cover buy if price exceed 2.0130 toward 2.0460 maximum target,then more selling should be around 2.0350 to 2.0450 toward lowest target around 1.9330.add more bid below 1.9890 to hit around 50 to 150pips target.

I would like to change a strategy for pound to protect our capital,because the pound make a strong bounce last week and look like bigger term still have a trial toward 61.8% fibo zone from 2.1143 to 1.9330 around 2.0465,this is only a first warning,while minor time frame look like to prefer selling option now,but a weekly study sign a rise is strong and have a potential to make 1more high above 2.0398 before another big fall.

for the best entry i would update intraday chart before us opening market everyday to update the latest story or potential signal in a nearer term view.

sell limit cable 1.9830 stop loss 1.99 take profit 1.9730
sell stop 1.9700 stop loss 1.9770 take profit 1.9580

Look like cable complete 61.8 fibo retracement.Breakout 1.9700 and 1.9650 is needed to resume pound to the downside,in case cable soar till break 1.9930 level,my strategy will change automatically,ok trader good luck and don't forget to protect your capital with stop loss.

Hello trader,

i just stare on my weekly chart above,current price for cable now breakout 3week range at 1.9650,this pressure accelerated to downside and for sure will hit 1.9580 sooner or later,while intraday chart say strong oversold condition,daily stochastic still heading down and penetrate 20.0 oversold level zone,weekly chart stochastic still healthy and show more progress to downside,in the nearer term,i should say cable would down a bit more toward 1.9580 and challenge 1.9529 high 11feb2008 before retacement.Upside should limited below 1.9650.Let mark our chart with the probability price target for selling pound,1.9580,1.9530,1.9480,1.9330,1.9140,1.8905 and 1.8522.And don't forget to mark potential resistance for pound when it bounce to rise,1.9650,1.9730,1.9830 and 1.9880.Okay trader you're most welcome to leave your comment or opinion.Have a nice day and good luck:D

New warning over mortgage lending

Mortgage funding could be cut by half in 2008 if no extra funding comes from the Bank of England, says the Council of Mortgage Lenders' (CML) chairman.

Latest figures

The latest figures from the CML on Monday showed the number of mortgages being lent for house purchase fell to its lowest level for 16 years in February.

There were just 49,000 loans made to home buyers in February, 3.5% lower than in January and 33% down on February last year.

The CML's mortgage figures for the three months to February, at a combined 163,000, are the lowest for any quarter since early 1992 during the depths of the last recession.

The Bank of England's Monetary Policy Committee reacted to the housing market slowdown with a cut in interest rates on Thursday.

Thirteen mortgage lenders, including the biggest lenders, have announced they are cutting their standard variable mortgage rates by the full quarter of a percentage point following the Bank of England's cut in base rates to 5%.

Many others say they will take more time to decide.

see the rest of this article : http://news.bbc.co.uk/2/hi/business/7343104.stm

The credit crunch does not have a larger effect for dollar only but it was flow to the global world and off course no excuse for pound too.

My forecast technically still view more downside for cable,and my projection last week still the same.Just mark your chart with the important point,1.9830,1.9880 and 1.9930,there are 3point to stop any action for cable to upside,every trial toward this point should be a big choice to sell the pound.

The price look like to continue to aim 1.9650 first,following next 1.9330,1.90 and 1.86.This quarter show a visible weakness for pound and next potential cut rate are possible happens in future.I will update the relevant entry for secure your position at the next post.

Yesterday cable bounce a bit after down from 1.9930,in the bigger view,cable still limited below 61.8% fibo retracement from all the time high price suggest more downside could be seen to challenge 1.9330,when look at the intraday chart yesterday,cable bounce completed to 50% fibo retracement from the low 1.9650,this situation indicate a projection to a new low,breaking yesterday low 1.9650 should confirm this situation,this action confirm with stochastic heading down.

recommend trades:

sell cable toward 1.9590,1.9480,1.9330..entry below 1.9700 and break out 1.9650 is needed to accelerated the momentum.stop loss 1.9830.

ok trader now we have a plan,just be patience,discipline and follow the rules entry and exit,while the trading have a high risk you should never ever entry without stop loss.See you then,good luck;)

The pound sterling really hurt and show the bearish extreme after break 1.9730 support before,although cable pass oversold intraday condition to bounce at the mid trading us session but it still limited 1.9730,while the perfect candle bearish candlestick and the price mapping in the downside channel,i don't see any sign to bounce or rise,suggest more downside could be seen.As long as 1.9730 hold price should continue to 1.9650 as an immediate target.watch out the narrow range 1.9660 to 1.9730 to determine your position.

trading strategy

sell stop 1.9660 tp1=1.9590,tp2=1.9480 tp3=1.9330,stop loss 1.9740
buy stop 1.9740 tp1=1.9830 tp2=1.9880

ok trader good luck and do not forget to trailing your stop loss;)

There are no difference cable action with the last friday and previous friday before.let mark the important point first,in a narrow range im waiting 1.9880 and 1.9990 to determine the next potential direction,don't entry for the breakout only,but the closing 1hour or 1daily candle above or below 1.9880,1.9990 or between 1.9880 to 1.9990 range.Shooting star candle formed at daily chart,but stochastic just exit from the oversold condition.Technically pound fail to bounce last week,just meet the upper trendline before retreat to 1.9930,this situation suggest more downside pressure in progress.1 bear candle on monday should confirm this action.


Aggressive trader:

Long small position at 1.9990 with minimum target around 2.0030 and maximum target 2.0090,stop loss only 60pips.
Sell a small lot at 1.9880 with minimum target around 1.9830 and maximum target 1.9730

i will update again on wednesday or thursday before gbp interest rate statement data release,anyway don't forget to trailing your stop loss and good luck;)

Look like cable bounce from a strong support at 1.9735,anyway,don't be hasty to entry,cable still in oversold condition,1.9880 break out is needed to accelerated,and 1candle closing above 1.9910 indicate a testing toward 2.0 could be seen.If bullish fail to comfort around 1.9980 to 2.0 area we should see a reversal there.In case price break the lower before around 1.9740,the downtrend should resume to try 1.9660 first as an immediate target.

Strategy:buy stop 1.9880 stop loss 1.9810 take profit 1.9980
sell stop 1.9720 stop loss 1.9780,take profit 1.9660,1.9550

Do not forget to trailing your stop loss to secure your profit.