Cable slips to a session low of 1.2932

Cable H1 19-11

The pound is weakening a little after its trip higher in trading yesterday - which failed to pose a firm test of the 1.30 handle once again.

Right now, price is running into some key near-term support around 1.2934-38 and this is the first spot to watch for buyers to lean on.

Below that, further bids and support is seen closer to the 1.2900 level with the 100-hour MA (red line) @ 1.2897 an area where buyers may step in as well.

For the time being, the pound continues to be largely driven by election sentiment but as I mentioned at the end of last week, the 1.27 to 1.30 range appears to be the "expected" zone for cable so long as sentiment keeps the way it currently is.

Looking beyond the election, there is more potential for cable to gain should things go smoothly for Boris Johnson but there are still underlying Brexit risks that could come back to haunt the pound next year.