 Good morning and welcome to the chart of the week video with me David Madden today's date is Friday the 15th of January 2021 and the time has just gone 850 GMT and this week's chart of the week is pound dollar or cable as it's referred to in the markets Pound dollar cable has been in a solid upper trend In fact yesterday a traded brief rate briefly traded above one spot 37. It's highest level In about two and a half years so them so the market is clearly in a very In an upward trend if you continue to press on higher from here We could be looking at heading back up towards one spot 37 92 a level last seen in April 2018 so we could be heading back towards once back 37 92 And if you go beyond that the next big number the upside will of course be 140 Now if you do see any moves to the downside in sterling We could see a support commit to play from the late December loans in around once by 34 29 which is this area here and that isn't too far away from this blue line here the fifth of the moving average And that comes in play in at once by 3410 and notice how On a couple of occasions not you know ago in December the fifth of the moving average acted nicely as support And if the metric has been has been important in the past It makes it more likely to be to be of importance in the future although there are no guarantees but even if you do have a 30-size the move to the downside and if it do take out The fifth of the moving average support could be found from this yellow line here the water and moving average You know just to south of one spot 32 and at one spot 31 99 Simmer scenario that metric act is the nicest support back in early November to keep an eye out for the 100 day moving average and Obviously, we've been in a saw it up or trend the last few weeks the last few weeks in months of buying on the dip has been a popular strategy Now if you're gonna be trading pound dollar, it's worth your while keeping an eye What's going on with sterling in general one thing is that we off here at CMC markets is Forex indices, and I can be found under our products Had done down further the list for us indices and it's the same premise of the stock market index But it's for currencies if you take a look at what's going on with the CMC GBP index the sterling index We can see that broadly speaking since the lows of mid-September has been in it up It's very solid upward trend. In fact yesterday the highest that we saw yesterday In its highest level since September since September 2020 so sterling as a whole is in a support And it's an upward trend a moment ago. We took a look at the at the Moment ago, we took a look at the pound dollar trend Which is which is clearly trending higher because they hit its highest level in over two and a half years So this ties in with down theory, which is what one of the terms of doubt theory is that? If the averages must confirm each other which essentially states If America is moving in a similar direction similar markets should be moving in a similar direction too So if you're interested in pound dollar move higher, it's hardly surprised that the CMC GBP index is also pushing higher Now if you're gonna be trading pound dollar or to be honest anything can major currency pairs today It is worth noting that on half one we have a couple of important economic announcements from the US So I said half one 1330 GMT. We have the US Empire manufacturing waiting for January And we have the US retail sales reading for December We did obviously be the all important month being Christmas Trinity wondering how much internal demand that has there been in the all important month of December That's all from this video. Thank you for listening. Have a good training week and good luck