Cable hits a two-day high
Cable stuck its nose above Friday’s high of 1.3596 but failed to break 1.3600 and has followed that with a minor retreat.
There is some upbeat sentiment regarding the UK economy. Morgan Stanley just now upgraded its view on UK equities to ‘overweight’ saying the UK market should benefit from higher commodity prices and rising corporate activity. They called UK equities “unloved and undervalued.”
Brexit is coming to a point where it will certainly stretch out for years and a good deal for trade is increasingly likely as the post-vote rhetoric dissipates.
For the moment, cable has made a series of higher lows on the three-day chart but will need to clear 1.3616 to get any real upside momentum.
I think there is a good case for the bulls here so long as New York doesn’t start aggressively buying dollars in the next few hours.