Cable is continuing to sell off this morning on the back of solid fundamentals eg.. uncertainty surrounding Greece and Portugal along with dollar strengthening after Friday's NFP data. Technically we can see the lower trend channel has been broken and the market is due a subsequent correction after the persistent rally seen over the last 2 weeks. Having already trailed my stop as seen above I will now be taking profits here (around the 1st Fib level which also coincides with some support levels across the board in other majors and commodities). There has continued to be strong buying around any dips in risk esp. EUR/USD which continues to trade in a range. For this reason I am happy to lock in profits here and will be looking to get back in on the short side if we see some strong price action signals in which case I will keep you posted. If we see buyers step into EUR/USD pair again today (as we did on Thur & Fri) I will be looking to get long EUR instead. As ever, watch this space.
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