Cable jumps on future agreement
It looks awhile for the market to get its head around the good news of a draft text on a future UK-EU relationship but it eventually led to a 130 pip rally in cable. Not long after trough with Gibraltar, fishing, Ireland and Spain led to a complete retracement.
Or at least it did for a few minutes as cable spiked 100 pips lower than rebounded back to where it was.
Now, volatility has ebbed and cable is consolidating in a triangle formation.
Watch out for a break to extend in either direction. I fear it will be lower because of the inevitable knife that someone in the UK will stick in May’s back.
What makes today especially risky is that the US is out for holiday so liquidity will be thinner.