The signs have been there for cable declines all week and patient shorts are finally getting paid. Yesterday, cable couldn’t get off the floor no matter the news
Cable broke through uptrend support at 1.6150 and broke down. The pound is easily the worst performer today and several GBP crosses look soft. There is certainly no cause for alarm for cable bulls but the pair had gone too far, too fast.
GBPUSD daily with 55-dma
Look for 1.60 to provide some support, followed by the late-September low of 1.5955. A more protracted retracement is likely and the pair may chop down to the 55-day moving average.
