Looks like day traders got themselves caught short cable this morning and are scrambling to get themselves back to square. Poor UK PMI gave them plenty of reason to sell along with a weak pound on the crosses. Lo and behold, the weak dollar trend reasserts itself and up goes cable…She’s a cruel mistress.
EUR/GBP is having trouble establishing a toehold above the 0.9000 level. It trades right around 0.9000 at the moment.
Cable resistance is eyed now at 1.6580, about where we were when the slide began after PMI this morning. Support is now around 1.6500, where buy-stops were tripped a short while ago. We trade now at 1.6540.
