The GBP has broken multi-year lows against some of the commodity currencies and is also showing signs that a bearish phase may be about to begin against the EUR and the CHF. I spent some fruitless weeks trading cable around the 1.6500 level quite recently and I’m not going to jump in again at the same level. My preferred entry level is close to the recent 1.6750 high so I’m going to take the risk of missing the downmove in order to avoid the frustrations of last month. The hourly chart is fairly non-commital.
Hourly support/resistance 1.6450/1.6600, daily parameters at 1.6250/1.6750.
