Cable on the ropes as price threatens fall to one-month lows

Technical Analysis

GBP/USD falls to 1.4071, its lowest level in a month

Most major currencies are still sleeping on the day but there is an interesting technical move in cable as it tests the lows from last week around 1.4073 currently.

So far, buyers are trying to keep a bounce off that level as price moves up a little back to 1.4080 but this is a testing time for cable after having coiled up for over four weeks.

Eventually, this rangebound trading will give way and the break on either side when it happens is likely to be a quick and sharp one.

The 1.4100 level at the close remains a key support on the daily so if sellers can push the agenda today and also break near-term support @ 1.4073, that could see downside pressure accelerate towards 1.4000 next.

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