Poor old cable getting it in the neck from all sides

You can pick a reason why the pound is suffering.

  • Oil falling

  • Yen strength

  • Dollar strength

  • Euro strength

It's all become too much for cable which has been down to test 1.3100 with a 1.3103 low. We spent a bit of time holding above the 55 dma at 1.3156 but only gave a passing glance to support around 1.3130.

GBPUSD H4 chart

1.3075 is the next main support under 1.3100 as it marks an area of support going back to late August from there down to 1.3055/60. A hold above 1.3100 could relieve some of the pressure from this drop but the mood might be set for the run into the Fed.

For now, 1.3130 may put up more resistance than it did support and the 55 dma will be in play again after that.