Cable trade idea updated
This trade has been dragging on for a while and I very much hope that it will be worthwhile. I managed to stay safe last week after a strong bounce off 1.2250 and the fact that EUR/GBP is threatening to to post a top near .9080/.9100 is also promising.
On a less optimistic note for GBP longs, comments from the BoE seem to be paving the way for a move into negative interest rates and although this is not unexpected, it could lead to a rocky start for the pound in early Monday trade. Let’s wait and see what happens.
If the market ignores the comments then we should see a test of recent highs near 1.2550. Lets hope that volatility increases.