Cable bounces back above 1.2000
Cable broke down to the lowest since 2016 on election worries earlier today as it fell through 1.2000 and down to 1.1959.
But it's rebounded a full cent from the lows to 1.2055 as the US dollar slumps on the first contractionary reading since 2016 and the lowest new orders reading since 2012. It's led to broad US dollar selling as yields and stocks fall.
There is a potential dragonfly dogi on the daily chart but we still have 6.5 hours of trading to go and a huge vote in parliament. That's coming at around 2 pm ET (1800 GMT). If parliament takes control and blocks a no-deal Brexit before an election call, I could see some further upside but risks run both ways.
