Cable looks heavy, betting on drop to 1.2885

The daily chart shows the pair has topped out – hanging man and a bearish follow through.More importantly, the spot closed yesterday well below the 50% of Thursday’s rally.

Construction PMI will be out at the top of this hour. being the least important of the three  – manufacturing, services and construction – I don’t expect const. PMI to move the cable in a big way. A blowout figure might see Cable jump, but that would only be a ‘sell on rise’ opportunity…

Only a daily close above 1.3031 would convince me to go for long Cable trade

Daily chart

Screenshot_3.jpg

1.2926 (23.6% Fibonacci retracement of 1.2589-1.3031 is offering support, but is likely to be taken out ahead in the day.

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