Cable in its own little world, ignores risk-off environment
The pound is resting higher on the day as cable buyers push past the 200-hour moving average during the session
Cable remains perky just under the 1.3000 handle in trading today as the pound continues to try to search for a rebound after the drop sine the start of the month.
Post-Brexit negotiations are set to come into focus soon enough and that will present a fresh set of risks for the pound and cable in the coming months.
But for now, the technical play continues to see cable sit in range around 1.2900 to 1.3000.
In the near-term, price is technically more bullish after buyers managed to move above the 200-hour MA (blue line) @ 1.2965. However, gains are limited around the highs yesterday at 1.2989-91 with further resistance and offers around 1.3000.
To the downside, the daily chart offers a better overview of the situation:
The 100-day MA (red line) continues to help to provide an area for buyers to lean on and that is limiting losses for the pound so far since the end of last week.
That level rests at 1.2921 (depending on your broker, it could be closer to 1.2900 so I would regard this support region around 1.2900-20) and that ultimately needs to be the area where sellers must break below to chase a further downside move.
As such, I would argue that cable is still waiting on a key catalyst for a technical push either back above 1.3000 or below the 1.2900 level.
That will provide the next key directional move in cable over the coming days/week.