Cable seems to be a reasonably good candidate for traders wanting to buy the pound because it’s not close to its high. 9 July’s $1.314 was a high of about 15 months which could be reached again if it’s confirmed that the BoE’s hawkishness will continue and the Fed pause. The key support is the 100 SMA around $1.265, which has been tested twice unsuccessfully so far this month.
The dragonfly dojis from there within oversold and relatively high buying volume considering the season would traditionally suggest buying. Conversely, some reasonably strong catalyst would probably be needed for the price to push back above the 50 SMA from Bands around $1.28. That doesn’t seem likely until the NFP next month, so technical action might dominate in the meantime.
The dragonfly dojis from there within oversold and relatively high buying volume considering the season would traditionally suggest buying. Conversely, some reasonably strong catalyst would probably be needed for the price to push back above the 50 SMA from Bands around $1.28. That doesn’t seem likely until the NFP next month, so technical action might dominate in the meantime.