I’m really not too sure what to expect from cable in the next few weeks.
- EUR/GBP has made some very strong gains and doesn’t look like its going to give them up and pairs like GBP/AUD have also seen some very heavy selling.
- Two of the bigger banks issued sell recommendations just before the big selling flows emerged and neither of them have changed their tune yet. One of them is sticking to their 1.5700 prediction.
- China had been buying around 1.6000 but hasn’t been seen this time down. One of the smaller ACBs was buying last night but I’m not sure they’re a good indicator.
All told, cable remains at risk for another down-leg to take out stops below 1.5930. I’m reducing my long position again until I feel more comfortable with what’s happening in the market.
