Cable: Hanging on grimly to the 1.58 handle
As I’ve said a few times recently, cable is extremely tricky to trade at the moment. There have been a lot of flows into EUR/GBP which has been the main source of bearish pressure on the pound but in recent days, there has been talk of some very large flows in straight cable.
Interestingly enough, some of these flows were reportedly cable buyers, and it would seem that there are some eager sellers hanging around and waiting for big buy orders to emerge so that they can offload what they need. This is quite a bearish sign in my view.
Would I sell here at 1.5825? No way! I’ve been trading cable since 1986 and it often looks it’s worst just before it rallies so I’m not chasing it lower. I’ve booked 60% of profits on my EUR/GBP longs and will wait impatiently for a 150 pip dip so that I can reinstate for the next leg higher.