Long-time readers know that I’m a firm believer in avoiding cable when at all possible.
Today looks to be an excellent day to avoid trading the once-proud pound.
You have cross-currents from the MPC looking as though it is leaning in the direction of further QE before long while at the same time you have the news of fresh budget cuts being digested by the market. We’ve had a big rebound in EUR/GBP after a sharp slide yesterday.
Cable looks bid at the moment after pushing above 1.5750 but as the intraday chart shows, it can come off 30 pips in a blink of an eye.
Trade if you must, but make sure you have a strong stomach.
