Pulling-back in up-trend | 29 November 2013

Cable has broken out of the range it was in and moved higher. It has reached a high of 1.63725 on the 7.5 pip box for GBP/USD. There has been some weakness this morning which has taken the exchange rate back down to the important 1.6330 support and resistance level and it could continue lower. This is a pivotal point since a break below 1.6325 lows would probably signal deeper weakness to 1.6255, whilst a rebound higher could revisit 1.63725. The bullish count calculated using the column of 24 green crosses at the bottom of the 26th November pull-back, generates an upside target of 1.6680, which could eventually be reached. A closer objective, would be resistance at 1.6430.