Lloyds Bank thinks cable has bottomed and the bounce has a long ways to go
Cable is at the highest since early August and has climbed in four of the past five weeks but it's been a miserable run for the past decade.
It had been tentatively rising from the 2016 low but failed at 1.44 earlier this year and sank back down to 1.28 last month.
If the long-term trend is higher, that's a buying opportunity and that's exactly what analysts at Lloyds Bank believe.
"Long term, we believe the bear cycle that started back in 2007 at 2.1160 completed at 1.1490. On a multi-year basis, this suggests mean reversion back to 1.50-1.60," they highlight today.
In the shorter term, they also like the upside noting the break above resistance in the 1.3150/70 range.
"Up
through here should keep the current recovery on track for a move
towards more important resistance in the 1.33-1.35 region," they write
but warn that support down to 1.3045 needs to hold.
