As we can see on the lower chart, the Bullish Major trend support line has been violated. We initially thought that the 75 basis point cut last week could push the cable back into the Major trend's channel. Although we saw a surge in Sterling, we have to face the facts:
- The violation of the bullish major trend testifies that we are now situated within a bearish probability
- The Current Trend will in the near future develop into a new Bearish Major trend
Market movement is now converging on the bearish current trend resistance line. Let's see if it holds. Should the current trend be violated to the upside, we might see price moving all the way up to around the 2.0300 level to confirm the violated Major Trend Support line (which has now become a HUGE resistance)
We will trade short as soon as we can see a clear bounce on the Current Trend resistance line as all our Indicators are still showing some bullish momentum
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