After two days of gains Tuesday and Wednesday, it looked as though cable might develop one of those rare oddities known as a short-term trend. Today it has reverted to form, dashing the hopes of the longs, taking their lunch-money in the process.
Cable has fallen as low as1.6560 thus far; tenuous support lies at 1.6548. A break targets a return to the 1.6400 area. Should 1.6550 hold, 1.6625 should provide resistance on bounces.
EUR/GBP is at long last showing strength, helping validate Sean’s view that today would be a EUR/GBP day.