Cable struggles to sustain Monday’s bounce
Monday’s bounce as the USA took a day off for the inauguration was quite vigorous but doesn’t seem to alter the overall technical picture significantly. With the BoE expected to cut about 0.15% more than the Fed this year in total and ongoing concerns about the British government’s budget and the country’s growth, the fundamental situation seems to favour more losses.
$1.21 is still in view as a support while the test of the 38.2% monthly Fibonacci retracement around $1.233 seems to have failed for now. There’s no clear signal from the stochastic oscillator or ATR.
The next obvious target below would be around $1.20, but there’d probably need to be a significant uptick in selling volume for that to be achievable ahead of next week’s meeting of the Fed. Meanwhile on Friday 24 January traders of cable will concentrate on British consumer confidence and flash PMIs.
This is my personal opinion which does not represent the opinion of Exness. This is not a recommendation to trade.
$1.21 is still in view as a support while the test of the 38.2% monthly Fibonacci retracement around $1.233 seems to have failed for now. There’s no clear signal from the stochastic oscillator or ATR.
The next obvious target below would be around $1.20, but there’d probably need to be a significant uptick in selling volume for that to be achievable ahead of next week’s meeting of the Fed. Meanwhile on Friday 24 January traders of cable will concentrate on British consumer confidence and flash PMIs.
This is my personal opinion which does not represent the opinion of Exness. This is not a recommendation to trade.
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