The cable chart doesn't paint a pretty picture
A succession of lower highs and lower lows is a sign that...
Things are going to get worse before they get any better. Right now, the pair is trading below the lows posted on Monday which was at 1.2920. The next support level comes from the figure level and bids around 1.2900 but it's tough to pick levels beyond that when there is such a large air pocket between relevant support levels if you look at the chart above.
When something like this presents itself, I always advise to look at the near-term chart for any possibilities of a reversal or retracement.
Let's look at the hourly chart:
With price action making new lows, it's hard to argue for anything but a move lower for the time being. Should there be any retracement higher, Fib levels would work well to define and limit risk levels but for any real form of reversal always look towards a move towards the key hourly moving averages.
For now though, the daily chart is one that looks really bleak for the pound and if there is an obvious trend like the one above it's best not to fight it. Never catch a falling knife or don't stand in front of a moving train. However you want to put it, that is very much the case here.
If you're looking to catch any bounces or a reversal in the trend, I'd advise to do so in a break of the lower highs, lower lows pattern above. I don't see how else to play the pair otherwise.
What are your thoughts on cable right now?