Cable breaks out of triangle consolidation pattern but buyers are still hanging on
Cable remains supported by the key daily moving averages
The triangle consolidation pattern is one that has been eyed since last week and as mentioned at the time, the trade would be to go with the break. However, as mentioned then as well, it's hard to justify a technical breakout in cable unless it is accompanied by fresh Brexit news to back that up.
As it stands, there isn't much new Brexit developments and that is helping buyers stay in the game despite price breaking out of the triangle pattern. Currently, the 100 and 200-day moving averages (red and blue lines respectively) @ 1.2959 and 1.2964 are what is helping to allow buyers to hang on with further support seen closer to 1.2950.
Sellers will have to find a way to break below that in order toe extend a move to the downside but I reckon that will only come if we get fresh Brexit developments later this week.
Hence, despite cable trading under 1.3000 currently, it doesn't mean that sellers are firmly in the driver's seat. Brexit headlines will ultimately be the key catalyst for a significant directional move in the pound so until we get fresh developments, we could see cable bounce around these key technical levels and 1.3000 for the time being.