Cable flat on the day as earlier rally erased
Disappointment is the story for cable bulls in August and that continues on Friday. The pair hit an 11-month high of 1.3267 on August 2 set the table for what could have been a strong month, especially as the US dollar began to skid.
But Brexit woes and weak economic data undermined the pound and it's been in reverse ever since. Earlier this week it hit a one-month low of 1.2837. In the last two days cable attempted a rebound but has floundered. Today it reached as high as 1.2918 but has fallen back to 1.2859, which would be the lowest weekly close since June 18.
Ominously, there is a rough head-and-shoulders pattern on the chart that targets a return to the June low of 1.2588.
