There's been very little in terms of proper direction to work with in the pair as trading this week has been centered around the focus on Fed chair Powell's speech at Jackson Hole. There has been pushing and pulling in the dollar, with cable pretty much stuck in a bit of a rut in and around the 1.1800 handle.
The 14 July low at 1.1759 remains a key support to be mindful about on the daily chart and it is one to watch in case the dollar makes a bullish move in the aftermath of Powell's speech later.
A break below that will see little in the way of a steeper drop in cable back towards the 2020 lows with 1.1500 eyed.
The pound side of the equation isn't helped by domestic concerns on energy prices. The latest one here is a setback to UK consumers again. There are a lot of number crunching being down on fin twit but one that stands out is that another way to look at it is that the average UK household will then pay more in energy bills than they do in income tax. Worse still, rough calculations from analysts at Cornwall sees the average energy bill at £551 per month. That is not far off from the average UK mortgage payment of £700 and for some cases, it exceeds their monthly house payments. That's a damning statistic.
It is no wonder why the BOE is being forced into a tight spot when trying to raise rates further. Oof.
