Cable moves back up to close in on the 1.2450 level
This comes after price hit a low of 1.2418 earlier but failed to hold a break below swing region support (and the 76.4 retracement level) around 1.2424-30.
The dollar continues to remain bid on the session but the next key risk event for cable is the Tory leadership result announcement.
Should Boris Johnson be confirmed, I would expect the knee-jerk reaction in the pound is for a move lower first before the possibility of shorts being covered on the news. As for a Jeremy Hunt surprise victory, expect the pound to soar and I reckon we could easily see price climb towards 1.2500 to test the 200-hour MA (blue line).
The announcement is set for around 1045 GMT so that’s just under an hour from now.