Short term thinking: Good buy opportunity with NFP tomorrow, weak dollar data could send us on a recovery path back into T1. More reasoned thinking below. Worth noting the break of rising could see bears entering the market again and attempting to break through support.
However i am confident that the support will hold for now as the BOE rate cut today was not enough to convince cable bears to test the level at 1.307 yet
- with the rate cut by boe today we have been presented with a possible good buy at around 1.307 in my eyes
- very strong support there as shown and as long as price doesn't form a decent move below the zone I'm happy to be long
- target 1 is the only realistic near term target as price was held in a range between this and the support after stabilising the brevet haemorrhage
- realistically if a position was entered it would be exited around T1 as it could take months to years for the GBP to see 1.47+ again but with the fast move down we saw there is a lot of illiquid areas of price in the market where we could see price fly through in the future