Cable: Buying big dips is favoured strategy
Recent reports from the interbank market and from prime brokers suggests that the bigger speculative players are taking a negative view of GBP whereas real money and asset managers are tending to be buyers. That says to me that the speculators will drive it lower in short-term but on a more medium term basis, the bulls will eventually hold sway.
Cable is never the best pair to trade from a technical standpoint but we should note the big levels nonetheless, with a 38.2% retracement level at 1.5995 looking like an obvious target just beside the always important round number at 1.6000. I think we may see a test of this level in coming sessions and my bias at the moment is to buy dips.