Cable: I’m getting tempted to buy again
The one currency which seems most likely to appreciate quickly once the USD bulls get tired is the GBP, in my view. There hasn’t been too much of a bounce thus far in cable but I have been on the look-out for a short-term base to form. The price action above 1.6200 will be giving the contrarian bulls some modest hope.
I’m certainly not going to buy in here at 1.6240, but if the market can start making fresh short-term highs above 1.6290 then I will start buying dips with stops below 1.6200. I’m not expecting a huge move, but perhaps a 300 pip relief rally might be in order? Let’s wait for some confirmation of a base first of all.