Cable slips to a low of 1.2825 on the session
If there's one word to sum up cable price action over the past week, it is exhaustion.
As much as buyers are trying to keep up the upside momentum from early October, it is hard to battle against the fundamentals especially when there is so much uncertainty at play.
Cable has now eased to a low of 1.2825 today but technically, it does not mean much as mentioned earlier here with key near-term support seen closer to 1.2800.
Pound traders are just waiting on Johnson's election bill to be put forward and whether or not he has the support to finally get what he wants at the fourth time of asking.
But even if this succeeds or fails, don't expect the uncertainty to go away.
If an election is called, the Brexit legislation is likely to be put on ice as domestic politics become the main focus. Johnson may look good in the polls now but so did Theresa May back in 2017 and look how that turned out for her.
As such, it is not a given that an election is good news for the pound as politics is a funny thing. A lot can happen between now and come polling day in December.
Meanwhile, if an election motion fails again, it will be down to Johnson if he wants to carry on and un-pause the Brexit legislation.
If he follows through with his threat and doesn't do so, we could all be sitting in limbo until either opposition parties agree to an election eventually or we run down the clock to a no-deal Brexit on 31 January 2020.
