Cable: Still very tricky to trade; bearish but at lower end of range
The single main driver in cable is EUR/GBP flows, no doubt about that. Longer term structural short positions are being liquidated and this could take the cross up towards .8500 pretty quickly. With this backdrop, it will be very hard for the cable to rally but a quick look at the medium term charts (in members section) shows that we are at the lower end of the range in a broadly range-bound market. It could be that any further EUR/GBP gains come mainly from a higher EUR rather than a lower GBP?
I’d prefer to be short cable but the risk-reward below 1.5900 is not conducive to a short position imho. I prefer to wait for any rallies back towards 1.6050.