It’s always a conundrum playing a pair where the market has a similar view of the components – in this case (generally) bearish, perhaps moreso of sterling than aussie. However for the moment , like other pairs, cable is lacking follow through and perhaps the market is ‘up to pussy’s bow’ with short positions.
Editor’s note: ‘up to pussy’s bow’ means ‘full’, ‘had enough to eat’ etc.
The weekly chart couldn’t be clearer – major downtrend but a decent contrarian short-term opportunity for the bold could be to buy with a tight stop and look for a retracement as shown on the daily chart.
A break of 1.4500 certainly has danger signals and no target !