Cable rolls over & consolidates


GBPUSD has lifted to 1.3636 during the European morning, but remains within yesterday’s range and has tested the key 1.3600 level. The rise in yields has fizzled out for now and with Treasuries outperforming versus core European markets, the Dollar has struggled during the European AM. The fact that UK PM Johnson managed to cling on despite the heated debate over “partygate” and calls for his resignation may have helped Sterling somewhat this morning, but while there still seems to be attempts to get sufficient support for a no confidence vote, for now the Pound is finding support and has also lifted against EUR and Yen. There were more new revelations this morning from Conservative MP William Wragg, accusing  government  whips and No. 10 of blackmail and breaking ministerial code, who says they’ve threatened to withdraw investment from MPs’ constituencies if they support the no confidence vote.

Technically, on the daily timeframe Cable rallied to and rejected the 200-day moving average at 1.3750 last week and has tested below the key psychological 1.3600 this week. This is the first of the Fibonacci levels, next sits at 1.3525, 1.3460 and the important 61.8 level at 1.3400. To move higher, the 1.3600 level needs to hold and a breach and break of 1.3750 needs to happen. Today, the 200-hr moving average sits at 1.3640, the 20-hr moving average sits at 1.3620. Support below the key 1.3600 is yesterday’s low at 1.3585 and Tuesday’s low at 1.3570


Click here to access our Economic Calendar

Stuart Cowell

Head Market Analyst

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our written permission.