Cable: Getting close to interesting levels
As a definite non-believer in the current USD rally, I’ve been biding my time and waiting for for a good entry level back into cable longs. There is strong technical support at 1.5720 and that is the level I’m watching. GBP/JPY also has decent short-term support near 181.00, which will also provide clues as to the pound’s near-term fortunes.
These levels seldom hold exactly to the last pip, so I will wait for short-term basing formations or spike lows before entering with very careful positions. USD sentiment is very strong so it’s highly unlikely that we get a sudden sharp reversal there; in other words even if I miss the first opportunity, there are likely to be others.