Cable: Quite a few medium-term bears about
There were rumours in the market that China has selling interest between 1.6250/1.6300 and also that option players will be selling in size near 1.6300, and perhaps this is what is affecting medium-term opinion. I’ve been running a bear strategy for a few months now, playing a 1.63/1.59 range, and it’s worked reasonably well but I haven’t been able to properly pull the trigger this time; perhaps it’s just too close to Christmas. I think if we get a clean break above 1.6300/25 then the bulls will re-take control and the danger turns to the topside. Until that happens, risk-reward is with the bears, selling below 1.6300 for a return to levels below 1.6000.