Watching Cable For A Break Lower

Watching Cable For A Break Lower

The British pound has weakened across the board this week. And we see potential for further downside to come. GBP/NZD has depreciated around -1.4% since our prior video, having broken its bullish trendline and suggesting the high has been seen around 2.0.

As for cable, it’s found support around 1.2183 yet 2-year yield differentials between US and UK rates point lower, so we’re waiting for a downside break on GBP/USD. Whilst it may not come in a straight line, we remain bearish whilst prices remain beneath the 1.2413 high.

We’re just a couple of hours away from a slew of UK data which includes industrial, manufacturing and construction output and monthly GDP. It would likely take a broad set of stronger than expected figures to lift GBP from its lows, so any rally below 1.2413 could be appealing to fade into, to anticipate an eventual break lower.

Original Post

Watching Cable For A Break Lower

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.