Easy come, easy go in cable to start the year
Yesterday's rally flops
Cable started the year with a big rally yesterday but today it's gone to shambles. The pair is down 85 pips after a 90 pip climb Tuesday.
Resistance at the September high of 1.3657 helped to stall the rally after a climb to 1.3613 early today. The latest leg down came after strong US manufacturing and construction spending data.
The problem, as always, is Brexit. Cable was able to make some headway in a quiet time of the year but that won't last. And when the Brexit news hits, it's usually bad news for the pound.
Greg has a look at the cable technical analysis.