1.2559 was the May low
Cable has embarked in a bit of a turnaround today.
It’s up 28 pips to 1.2562 after falling as low as 1.2506. The figure provided some support and it rebounded. Now it’s up above the May low, which was where it broke down yesterday. A close above there would be a modest positive going into the Fed and BOE.
Fundamentals are going to dominate from here so it’s not surprising to see it retreat back to the pivot point. The first hurdle is tomorrow’s UK CPI report. It’s expected to show prices up 0.3% m/m and 2.0% y/y.