Cable runs stops above 1.30 to highest levels since May

Technical Analysis

Author: Justin Low | gbpusd

Cable hits a high of 1.3030, strongest level since 13 May

Cable H1 04-12
Watch out for a further extension as the pair runs stops above the key figure level. It is something I warned about yesterday already with the mood surrounding cable seemingly slightly different this time around when it was knocking on the door of 1.3000.

I reckon this is where pound traders may start considering to price in more of a majority victory for the Conservatives in next week's election. As such, be wary of further gains to follow especially if price can break above 1.3050.

Looking ahead today, be wary that there is also US ISM non-manufacturing data to come and that could yet play a role in affecting price action in the sessions ahead.

But from a technical perspective, the upside momentum looks good for cable if it can sustain above 1.3000 and may get a further boost if the election result favours Boris Johnson in next week's polling.

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