The whipsaw continues
Cable is up more than 100 pips for the first time since election night as it rises for the fourth day.
The flush lower last week chased speculative longs but the November lows in the 1.2750-1.2850 were never really challenged and that keeps the uptrend intact while keeping the market in a relatively balanced state.
Fundamentally I would like to see a pivot towards something more growth-positive from Boris Johnson but on the technical side I'm watching the Fibonacci levels.
If you remember back to election night and the initial pullback, it was the 61.8% retracement of the gain that was the key level. I highlighted it then as a place to manage risk and that eventual break of 1.3289 was a sign to get out of the way. I wrote:
Another way to look at it is that we've narrowed into a range around 1.3335. The extremes are 1.3305 to 1.3367. Go with a break in either direction.
On the way back up, the key Fib is almost in the exact same place but first the pound will need to get through 1.3138 in a few illiquid trading days.
