Cable: I’m sincerely hoping that was the base!
The neckline on the 1.5000 double bottom was marginally breached but cable was unable to break below 1.5130 and I’m hoping that an interim base is now in place. I’m still long with an average entry near current levels and I’ll keep my stop at 1.5100 for now, as if it goes there again then I’m well and truly wrong.
The EUR/GBP, EUR/USD dynamic is very interesting; the cross came in for some heavy selling yesterday and the .8600 resistance continues to look imperious. On the other hand, Sovereign buyers soaked up the EUR/USD element meaning that all of the pressure was exerted onto the cable. The price action was certainly impressive.
Any chance Mr Carney will say that cable would be better served at 1.75 🙂
I’ll be back in a few hours, hoping it stays quiet today in Asia.