What a week for Cable (GU pair).  After climbing up for 4 days, it suddenly go down because of bad economic data. This time fundamental beating tehnical. It was confusing but very interesting to review, I’ve learned something from this week.

Generally, cable moved up this week. It broke 3 resistant line, and 1 of them was a strong psycologic at 1.6387. After it broke 1.6 resistant, cable made strong bullish movement. It was made deep correction in Thursday and moving up again.

When most of traders (including me) thought cable will make a new high or will break 1.6742 this week to confirm that the bearish trend was finish, it was moving down again because of bad Prelim GDP q/q data, the actual data released -0,4%, worse than expected 0,2%. The problem is, cable moved 393 points down yesterday and made this week movement back to neutral.

Let’s wait for next week, where will cable move? I saw in ActionFX.com that there was a regular bearish Divergence. But we must wait for many confirmations signal, do not trade only base by divergence, because it showed many false signal.

Divergence Trading

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3. Forex, 3rd week September 2009
4. Moving Average
5. Beginner Luck