Bank of England twitches first

Cable has been under pressure over the last months from both a strong US dollar and a weak British pound. From an early-June high of 1.4250, GBPUSD currency pair has been stuck in a well-defined Bull Flag downtrend with lower highs and lower lows dominating price action all the way down to 1.3160 what represents this month low and is current 6-month downtrend low.

GBPUSD currently trades around 1.3240 and is trying to build a base just above its recent multi-month low. After the Bank of England was the first to move among major central banks in raising borrowing costs, this may prove successful and could send the GBPUSD pair higher towards a short-term target zone of 1.3650 or so.

Here is the quite positive looking chart situation of the pair, from which the possible uptarget zone of 1.3650 can be derived:

The rally from # 1 // 2020 coronivarus panic low finally topped after 64 week candles into final high of 2021.

Afterwards a perfect looking and so far also perfect working weekly Bull Flag - an usually very bullish consolidation formation - formed. The red Bull Flag resistance is 1 times, maybe 2 times tested falling week highs rail. The last trading week was the 3rd push lower into almost perfect working green Bull Flag support. Three pushes lower formations into then holding main supports often signal an intermediate bear extreme has arrived or is due to arrive very, very soon.

For cable, as for thousands of other markets, the Omicron low resp. the Omicron panic lows could form a crucial higher low in a continuing bull market cycle, because the Omicron panic event occured after 89 to 90 candles on the weekly charts & during the 21st candle on the monthly charts.

For cable in particular, we count that the usually bullish third push lower series into Bull Flag support rail happened in the course of the 90th (90 - 1 = 89-Fib number) week candle of the bull market.

==> Although the weekly momentum does not yet indicate a sustainable turnaround, the chart technical situation has now turned positive, as it may well be that at last week's low, an 89-weeks/21-months time event occured right at the main support (price factor), which maybe finally turned the short- and medium-term trends from short to long.

This monthly 6/9 Candles up starting at # 1 // last bear market low of March 2020 could depict the general bull market situation for cable best: