Cable is down a quarter cent to 1.5082 today and if the latest levels hold, it will be the fifth consecutive day of declines for cable.
That sounds like a very bad run but in November there was a five-day streak and cable fell for 8 straight days starting in late September. Still, the 3.25% cumulative decline easily exceeds those falls.
A four-day fall of a similar magnitude in early September was followed by a nearly-complete retracement over the following 10 days and I think cable could be in store for something similar, or at least a 50% bounce to 1.5336.
There really hasn’t been a great reason for the pound to underperform so badly to start the year. Ostensibly the drivers were soft manufacturing and services PMIs but even though they missed expectations, both were still firmly in expansionary territory.
GBPUSD daily chart
