Cable: Consolidating and looking constructive
- The sight of Asian Sovereign funds buying dips overnight will give us bulls added confidence;
- Bids expected to be heavy around 1.5770 but we can also expect trailing stops to be building below 1.5740;
- Option barriers reported at 1.5850, 1.5900 and 1.5950;
- With the ‘taper’ announcement moving ever closer, we may see some hefty flows in the next few sessions;
- I’m happy to stay long for now and to wait and see how the market develops. I will reduce my long position by 1/2 below 1.5740.