Cable update: First target at 1.35 then 1.38-1.40
I’m expecting volatility to increase significantly in coming weeks as the US election date nears. All of the no-deal Brexit headlines will have encouraged plenty of fresh cable shorts and these will start to get worried if recent highs near 1.35 come into focus again. I will stay core long cable in the hope that these shorts get squeezed and we see a break above 1.35.
In the meantime, I’m encouraging those following the strategy to stay in dip-buying mode and take advantage of strong rallies to book some profits. Rinse and repeat as usual.
Support should now be firming near 1.2900 and its important to keep an eye on some of the crosses like GBP/AUD which have broken important resistance levels.