Sterling Bullish ?

At the conclusion of my last post I offered the opinion that downside potential on all of the Sterling crosses looked to be dwindling and the back of the week saw the 3 that I follow reverse.

...which is encouraging.

As planned I did have a couple of cracks at shorting GBPJPY back to the 800 below 155.50 - which it made - but it was a choppy old descent and I was not sufficiently convinced / too nervous to stay with either trade. Net result; 120 pips lost.

If I don't really believe in a trade, I can't seem to make it work and am better off staying clear. This is a Lesson I could do with hoisting in.

Once the reversals happened I traded much more positively, scooping another 200 pips on Cable and GBPJPY before the trading week closed.

I ended the week with the Account 3% up, which - unsrprisingly - I'm pretty pleased with.

Looking forward, the technicals for Sterling remain bullish. Here are my tactics...

GBPUSD

Having already taken 100 pips out of Cable's return to the 1H 800, I am a buyer on a 'strong' 1H close above 1.4067 and will add a position on a close above descending resistance. Profit Target will be he 1H 800 sma.

GBPCHF

After last week's massive reversal spike following the BoS Interest rate cut, I am very bullish this pair...

Having said this, I'm happy to go with a strong 1H breakout from it's current consolidation around the 1H 800 sma in either direction.

GBPJPY

Having taken 100 pips out of this pair's recent reversal I'm going to stay on the side-lines until next week's price development generates a more emphatic trigger, either way.

In fact, I'm hoping that nothing triggers too early in the week (and forces my hand) as my instinct tells me that the first couple of trading days could be choppy.

Of the two trades I am currently looking at, Cable is my favourite as it is completing a cycle.