Technicals... stops at 1.51 level. Current GBP weakness. Big fish will be looking at building short positions. If you look there's a possible that could form which could send price lower, which would match with fundemantals. Eventual target would be return to under 1.5000. Apologies, first post so I have no idea how to use arrows, so used to show price direction.
Thanks for your reply Steve. Cable is a very tricky one IMO because there isn't a whole load of divergence between the US and UK at the moment. Of course the mixed bag of data isn't really helping the dollar, however the UK also hasn't had the best of Q1/Q2. Conservatives winning provides bullishness to the GBP but not sure if this is a honeymoon period or not. US rate cut priced in? Thoughts?
I feel pretty GBP bullish here, I think the markets have overpriced the possibility of a U.S. rate hike this summer and underpriced the strength of the UK and Europes economies. The market marked down the UK over the scottish referendum and the UK election and never moved back when both had positive outcomes. I expect ongoing GBP strength and am currently long GBPNZD.