Cable gives back gains
Some optimism on Brexit talks and the Irish border problem sent cable a full cent higher to 1.3028 earlier today but it's now given up virtually all those gains and trading at 1.2934 in a disappointing blow for bulls.
The selling appears to be picking up into the London close, possibly on fears of a repeat of last weekend when Barnier hurt the pair with some negative comments. That led to a gap lower early in the week that persisted until mid-week.
I'm slowly becoming more constructive on cable but it's disappointments like this that keep me cautious. I want to see cable able to withstand some negative headlines.
Once that happens, I think it's going to 1.35 or even 1.40 because shorts are a crowded trade and the Brexit fears are intense.
As usual, it's all about the timing and today's inability to hold gains despite some good headlines certainly doesn't inspire near-term confidence.
