Cable is actually trading lower despite the dollar losing ground today
The fact that the pound is actually trading much closer to risk/commodity currencies is but a testament to how badly the currency is performing to start the new week.
Essentially, it is pretty much picking up from where it left off last week as we saw cable plunge from 1.3200 to under the 1.2300 level currently.
The pound is also pressured as it is being sold against the euro and yen, but the technical picture in cable isn't looking pretty either after taking out the 200-day MA (blue line) and easily falling below support levels along the way to 1.2300.
There is some semblance of support around 1.2200 next but there is a possibility of a further fall towards 1.2000 if the pound continues to languish and fail to find its footing.
The aftershocks from the BOE rate cut last week is being heard and with post-Brexit trade negotiations still going nowhere and the UK also opting to keep virus containment measures to a minimum, there is still a lot of uncertainty hanging over the currency.
Even with the dollar suffering so far today, the pound can't really get off the floor as well. And that is bad news for the currency if the current risk situation continues to stay the course over the next few days as well.
