CABLE Surges as Resistance Gives Way - What's Next?

We finally got the breakout of the resistance level @ 1.267 so what next ??


Personally, I'm exclusively focused on buying this pair, but with a calculated approach. We will be waiting for a pullback , as it presents an optimal entry point. On the chart, I've marked a potential buying scenario, where I anticipate a retracement towards the breakout area. Ideally, I'm looking for a drop towards the 1.263 region, which appears to be an attractive level for market liquidity.


"We might experience this downward movement before Wednesday's CPI data, but only time will tell."


In terms of target areas, my sights are set on the 1.305 region, which aligns with a significant weekly supply/sell zone. You'll notice this area marked by the red box on the chart. However, it's crucial to pay attention to the strong resistance level indicated by the prominent RED LINE within that box, positioned at 1.316. It's highly probable that price will be magnetically drawn to this level once we establish a position.


Of course, managing risk is crucial. So, here's the plan: I'll be setting the stop loss below the last swing low on the daily charts. The specific level will depend on where we enter the trade, ensuring we have a good risk-to-reward ratio and peace of mind.


To sum up the setup, we should be patiently waiting for a pullback to the breakout level, ideally dropping a little lower towards 1.263. Once there, I'll seek bullish confirmation on the lower timeframes, such as the 2-hour or 4-hour chart, before targeting the 1.316 resistance level.

I will keep the post updated if this buying scenario plays out :)

Hope you enjoyed the read happy trading!

Trade active:

Be waiting for price to drop down into my buy zone at 1.263 which has happened and allowed me to enter :)

Comment:

Position moving as planned have closed 50% of position and moved stop loss to 1.272