It’s hard to find a weaker currency than the GBP at the moment and on the opposite side of the equation, its hard to find a stronger currency than the USD. This of course means that the GBP/USD is the weakest currency pair amongst the majors and is exhibiting the strongest trend. I have no position here at the moment apart from a tiny EUR/GBP long, so I’m not talking my book. This cable trend is likely to remain the dominant force in the market in coming weeks and whilst there will always be the inevitable short-covering rallies, those who sell them are likely to fare best.
First resistance on the cable today is previous lows at 1.5070 and support is at Friday’s lows near 1.4990.