Five days of steep losses in cable have been followed by three days of sideways moves. The inability to bounce is a bearish signal.
The overriding theme in cable trading in the past month has been data. The pair is going wherever the numbers point and in the day ahead, trade balance, manufacturing production and the NIESR GDP estimate are key.
There might be a slight upside bias in the trade balance numbers, in the US data reported today the deficit with the UK was nearly $1 billion compared to $0.27B in Dec 2012.