Once again I should reiterate that I am long cable, have been for some time with a 1.73 target, and therefore I’m not very objective.
The fact that EUR/GBP stalled again near .8930 is a very positive sign for the pound. With demand for EUR/USD remaining firm, this could mean that the cable bull trend could be prone to some sharp acceleration. Pullbacks at the end of last week couldn’t even get below 1.6600, another bullish sign.
Further consolidation between 1.66/1.6850 remains possible, especially with London closed again today, but overall the risk would seem to be for higher levels.
