The back of the cable rally finally broke yesterday.
Cable had climbed in 12 of 13 days until an optimistic FOMC statement, followed by better US economic data yesterday reversed the momentum.
Cable is down more than 2 cents from yesterday's high and trading at a session low of $1.5230.
Cable daily
Light bids in the 1.5230/25 zone have been mostly chewed through with a low so far at 1.5225. The next layer of reported bids is at 1.5200, which would also mark a 150 pip decline on the day.
Technically, support at the March high of 1.5166 is a spot to watch. I can't help but think that shorts are still the right way to play this with the election a week away.
For more on the pound, check out:
- Pound takes its punishment as weaker PMI brings out the sellers again
- EURGBP demand helps place a cap on cable (Part 2)
