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$1.2940 Holds Key For Cable Recovery.

CABLE
MNI (London)
  • Early pressure on the USD into Europe, following a Tokyo thinned Asian session, allowed cable to nudge up to retest resistance around the $1.2940 level(Oct21 low, area of hourly highs Nov02).
  • Initial test failed to break above with rate easing off to current level around $1.2930. Early move could have been a probe for stops, similar to that seen in EUR/USD after rate edged above $1.1660.
  • However, cable has managed to maintain most of its recovery gains, after rate had seen lows Monday of $1.2855(seen on
    reaction to UK lockdown from Thursday/US election positioning).
  • US Election Tuesday, though results not likely until late in the day/early Wednesday, with full results maybe not known for a few days due to size of postal voting.
  • Light calendar for the UK Tuesday. Focus on Wednesday final Svcs/Comp PMI then BOE MPC policy announcement Thursday(no rate change widely expected but likely to increase gilt purchases by between Gbp50-100bln).
  • Support $1.2915/10, $1.2890, $1.2855/50. Resistance $1.2940/50, $1.2988, $1.3000.
  • MNI Techs: Breach last week of 1.2940, Oct 21 low suggests scope for a deeper pullback with attention on 1.2863, Oct 14 low and a key S/T support. Clearance of this level would open 1.2794, a Fibonacci retracement. Initial firm resistance is seen at 1.3080, Oct 27 high. A break would ease bearish pressure and open 1.3177, Oct 21 high.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets

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