Cable update: All about the USD but don’t forget Brexit!
I’ve been unusually patient with this trade and I still am sticking with my core long cable position and looking to add when momentum turns bullish. Must say I haven’t been overly flash hot on the latter part of the strategy but we live in hope.
I still suspect that there are some serious short positions in cable which will not panic until we start breaking clearly above 1.35. The expected USD volatility hasn’t quite eventuated (yet?) but I feel that one favourable Brexit headline might be enough to drive us above 1.35 and get that short-covering underway. If that does happen, then my target at 1.43 should be achievable.
On the downside, I expect recent lows at 1.2900 to provide support with stronger levels at 1.2680.
In the short term, a break above 1.32 will open up a bit of clear air. Good luck out there++