Nima Azadi's  Instablog

Nima Azadi
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Nima Azadi has been engaging in financial markets for over 10 years. His experiences vary from investing and trading in the Tehran Stock Exchange (TSE) and Foreign Exchange Markets to mentoring and consulting on the technical aspects of financial analysis. He is frequently quoted in the Iranian... More
My book:
Duel with the Trend
  • GBP/USD Technical Outlook - 4 0 comments
    Nov 10, 2013 1:19 AM | about stocks: FXB

    The Cable is traded within a box of about 350 pips and as long as this box holds, heavy selling is not recommended. If, however, the lower band of the box is broken to the downside, which seems likely, risk of shorting the Cable will be negligible and we will expect the Sterling to go down to the 1.5538 level.

    (click to enlarge)

    In the last week, the long positions were reduced and short positions increased which implies that the market is disappointed of the continuation of Cable rally which will make our bearish scenario more likely.

    (click to enlarge)

    All in all, in the short term we favor fluctuating within the box and provided we have a downside breakdown of the box, we will turn completely bearish on Sterling for the intermediate term.

    Disclosure: I have no positions in any stocks mentioned, but may initiate a short position in FXB over the next 72 hours.

    Stocks: FXB
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