Cable sits lower on the day as buyers look exhausted

Technical Analysis

GBP/USD is down 0.3% to 1.4075-85 currently

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The inability to keep with a break above 1.4200 is starting to weigh a little on the upside momentum in cable as buyers are showing some exhaustion and perhaps taking profits as the recent consolidation is leading nowhere ahead of the US CPI data later.

The low today hit 1.4074 and that takes out the lows over the past three weeks around 1.4083-86 though the daily close is the one to watch in case sellers start to break out.

GBP/USD D1 10-06

A lot of the good news have already been priced in for the pound so there isn’t much there to surprise the market unless the BOE takes up a surprising stance.

So far, only Haldane is willing enough to stand out but keep in mind that he will leave the central bank after the June meeting so the sole dissenter in May will be gone.

Going back to the cable chart on the daily, a close below 1.4083-86 may spell more danger for the pair back towards 1.4000 but we’ll see how sentiment takes to the US CPI data release later today to be certain of any firm moves.

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