Cable has been sort of directionless for a substantial period of time – more or less since it stabilized after its post-financial crisis crash from a high of 2.11 to a low 1.35 in 2008-2009 and traded between 1.40 and 1.70 for the past 5 years plus.
The pound rallied from around 1.45 to nearly 1.60 between mid-April and mid-June but backed down towards the middle of the 1.50-1.60 range since then.
On the downside, the 1.5330 3 ½ -month low and the 1.5090 61.8% Fibonacci retracement level of the move from 1.45 to 1.60 are the key levels to watch. RSI is negative with a 41% reading, while the MACD indicator is also neutral.
On the upside, 1.5687 should be watched as a short-term top as well as the 1.5928 June high which also marks the 9-month high. But given the lack of a clear trend for such a prolonged period, any breakouts will be treated with suspicion until a clearer sense of direction is established.
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