Yesterday's rally flops
Cable started the year with a big rally yesterday but today it's gone to shambles. The pair is down 85 pips after a 90 pip climb Tuesday.
Resistance at the September high of 1.3657 helped to stall the rally after a climb to 1.3613 early today. The latest leg down came after strong US manufacturing and construction spending data.
![](http://az705044.vo.msecnd.net/20180103/cable-jan-3.png)
The problem, as always, is Brexit. Cable was able to make some headway in a quiet time of the year but that won't last. And when the Brexit news hits, it's usually bad news for the pound.
Greg has a look at the cable technical analysis.