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Collins: Cable gains could lead market higher
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Alan Collins expects gains in GBPUSD to lead the market even higher. Despite the fact that the pair has lacked clear direction over the last 6 weeks.
Alan points out that: "Trading has been confined within a range of about 2 big figures with direction changing each week. Given that background, it’s difficult to call an end to sideways trading and to a more dynamic environment."
However Alan has tracked the fact that the gains yesterday used the 13 day and 200 day averages, plus an important daily Marabuzo line as a platform and adds: "In addition although yesterday's highs were not held, Monday’s entire net decline was regained and this move leaves 3cAnalysis signals as cautiously positive.".
Buying in the 1.5645/65 area.
The risk level is currently assessed as 1.5606 although under constant review.
Targets: 1.5718, 1.5741 or 1.5767.