Upon a firm break below 1.1800 and the 13 July low at 1.1759, it has been a continued drop for cable today to a low of 1.1650 earlier. Going by the chart, there isn't much in the way of a push towards the March 2020 lows or at least a test of 1.1500 first next.
The latest news by Ofgem here isn't going to provide much comfort to the UK outlook towards Q4 and with prices slated to rise further next year, you know things are grim when there will be some households who will have to pay more on electricity than they do for mortgage.
The question now is how strong really is the BOE's resolve as the economy runs into the ground? I'm going to keep maintaining the same view and bias for cable as per below (switching the technical levels only):
"Considering that both central banks (Fed and BOE) already gave a formal message that we are in the second-half of the tightening cycle, the trade for cable is very much a case of 'who folds first'? The Fed or the BOE? In this instance, it looks very much like the latter.
As such, the path of least resistance is for the pair to move lower - all else being equal. Now, with the dollar picking up steam across the board, the next test is 1.1800 1.1500 and the year's March 2020 lows near 1.1759 1.1409-45."