Cable: Weekly close below 1.70 would certainly trouble the bulls; 1.6970/1.7020 daily parameters

Long GBP has been the trade of choice (along with long NZD) amongst professional traders over the last 6 months. The big macro players are still very long and I suspect that they may start re-assessing if we get a weekly close below 1.7000. Present markets are being influenced more by sentiment than by technicals, and the big big figure is always an important psychological event.

Personally I still prefer the buy-dip strategy in cable but if the USD can maintain its short-term positive sentiment then we could see levels closer to 1.65 over the next few weeks.

There is an important pivot at 1.6970 which should provide initial intraday support and I’d expect 1.7020/30 to now attract sellers.

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