Earlier today cable stalled after approaching the 1.4234 level, the 50% retracement of the 1.3492/1.4977 rally. Prices pulled back to 1.4050 before rebounding to the 1.41-teens.
Cable is edging back up at the moment, fueled by fresh gains in US equities, which are up about 2%. In a sense, the pound has become sort of a bank ETF, swinging to and fro as sentiment shifts regarding the UK banking sector. Barclays “profit-warning ” (saying they will actually make a profit) this morning helped fuel the cable rally and a continued bounce in US banking shares is helping keep the move aloft. If the rally falters as the afternoon wears on, look for cable to soften in its range.
