Update 24/2
I have closed at the top of the flag for 150 pips profit and swiftly earned.
This pattern follows on from the similar looking pattern of early November. On that occasion the pattern terminated in reversal but given the vigour of the current europhoria, continuation this time is perfectly possible. With this in mind, I have placed a replacement long order at $1.57.
The EU fundamentals are too gloomy to be consistent with sterling in the $1.60s so I reckon we are in for more cable ranging while the euro finds it's top at $1.3620 ish. A correction after that? Some bad news from club Med might prompt it.
Pip! Pip!
HP
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My reading of the morning's cable action is that the Bank's dovish minutes, in which greater QE was advocated, delivered the cable to the bottom of it's newly forming range floor at $1.57.
I've taken the opportunity to buy as a hedge against my short euros. The forthcoming GDP figures should confirm or deny whether this was a good move or not. The hard data is more important than minutes. The range top appears to be at $1.59, so that is where my TP is placed.
Pip! Pip!
HP
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