FXWW News/GBP crosses/Trade Ideas

2014 predictions: Cable- the only way is up

Cable is headed much higher still. The market is only starting to turn bullish having missed the first move from 1.52/1.53 but I don’t think the market is long yet.

  • Economic data out of the UK remains very strong;
  • Keep a close eye on the EZ banking rules as we could see a big movement of funds into the UK in Q1;
  • The GBP is only just returning to more neutral long-term levels on some of the crosses;
  • I’m still very bearish on the EUR/GBP cross and this we could see .75 next year.

Prediction: We won’t see levels below 1.60 in 2014 and I expect to see cable trading above 1.80 at times next year.

  1. Morning Rhona. Yes I think so. The trend is very strong and I still don’t think the market is really believing the strong GBP story. The Yen shorts in market are bit of a worry but 170/180 should contain prices in coming weeks with strong bullish bias still in place.

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