Cable has resumed its downtrend and can test recent cycle lows.
As we said in our Market Movers comments yesterday, Brexit discord (and high uncertainty) both within the UK and between the EU and the UK continues to keep sterling soft. Poor manufacturing data yesterday morning - the lowest PMI reading in more than two years - has also not helped.
Technically, the long-term downtrend is well both well established and well known! Recently we saw cable bounce off its lows and form an ascending channel. However, prices have broken out of this channel today and have also importantly failed to keep above the July low around 1.2957.
Zooming into the hourly chart we can see bearish momentum has broken yesterday's lows. This has triggered our sell signal. Place your stop above recent consolidation at 1.2895 and a limit order at this month's lows at 1.2665.
As we said in our Market Movers comments yesterday, Brexit discord (and high uncertainty) both within the UK and between the EU and the UK continues to keep sterling soft. Poor manufacturing data yesterday morning - the lowest PMI reading in more than two years - has also not helped.
Technically, the long-term downtrend is well both well established and well known! Recently we saw cable bounce off its lows and form an ascending channel. However, prices have broken out of this channel today and have also importantly failed to keep above the July low around 1.2957.
Zooming into the hourly chart we can see bearish momentum has broken yesterday's lows. This has triggered our sell signal. Place your stop above recent consolidation at 1.2895 and a limit order at this month's lows at 1.2665.
Trade closed: stop reached:
GBP brexit news. -60 pips