I find it useful to look at the big picture from time to time. In technical analysis terms, that usually means inspection of weekly and/or monthly charts. However, I rarely get to see analysis of "ultra-high" timeframe charts, so I decided to make a couple of attempts of my own. Previously, I analysed long term charts of the Euro and the Yen.
Today I'll have a look at yearly and quarterly Cable charts, covering the period from 1971 to 2015. While the yearly may be good for a quick overview of the price action, the quarterly chart offers more detail and makes trends, ranges and patterns more easily observable. I will be focusing on the latter for my analysis.
The Character of the Pair
The thing that I find the most fascinating on this long term chart is that it pretty much captures the character of the pair that is known to me from trading it on lower timeframes. Long lasting trends with deep retracements; sharp rallies and sell-offs; extended ranges; and plenty of fake breakouts. Were time and price scales removed, I might not have been able to tell that it's not a daily (D1), not an intraday (H1) and not a London session price action (M5)…