Well, in terms of sentiment, not much has changed since my post last week here.
I outlined why cable is struggling and the same mood is persisting as we get into the new week. The drop below the 50.0 retracement level @ 1.2830 sees sellers open up the next leg lower and that is towards the 1.2700 level now. The September 2020 low @ 1.2675 is also a key one to watch as a break below this region sets out the next push towards 1.2500 with the 61.8 retracement level sitting @ 1.2495.
Month-end flows might make it a bit more tricky but given that the usual suspects will still be at play until the Fed next week, I continue to maintain the view that sterling might not see much reprieve in the meantime.
