Technical Analysis

Cable back to unchanged levels on the day as key near-term levels hold

Cable bounces back up to 1.3088 from a low of 1.3061 earlier


The pound is the notable mover as markets continue to stay quiet, with cable bouncing back from lows earlier paring losses to be unchanged on the day once again. The pair was defended by the 100-hour MA (purple line) as highlighted earlier but buyers also managed to keep the hourly candle close above the trendline support seen so far this week.

Currently, price is sitting in no man’s land with near-term bias being neutral as the pair is holding at the 200-hour MA (green line) @ 1.3088. That said, the upside bias in the pair is further limited by resistance and offers closer to 1.3120.

As mentioned earlier, given that Brexit developments are very much in limbo right now, the pound is likely to trade in similar fashion; reflecting choppiness and uncertainty as we wait on how things will play out in the coming months.

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