Cable consolidation nearing cycle end

Dollar and pound remain evenly matched and have been more or less consolidating over the last 6 or so years. Something has to to give. I anticipate cable to continue consolidating over the course of 2016 providing opportunities for those more accustomed to range trading.

I prefer trending markets and will look to pick up the pound around the 1.45/46 area as it approaches major trendline support. The charts suggest a 30% move.

This enormous pennant formation on the monthly should provide an explosive move with a proper break but I don't think we are there yet.