I’ve been bullish and long cable since late last year and the trade has been very good to me so far. I think the time is right to start booking some P and I’m taking 60% of my position off the table. I’m still bullish cable in the medium term but the move overnight in EUR/GBP has me a bit worried.
There is some moderate resistance building now near 1.6350 in cable; if EUR/GBP keeps moving higher and if the USD gets a boost against the CHF by breaking higher, then we could see a pullback in the cable towards 1.6000. I’ll maintain a small long position just in case we do break higher and reach my 1.6500 target.