We have been observing the Cable for quite a while since the Brexit vote and its smooth recovering after the laws touched in June 2016 is now touching once again a key resistance, the same level that was two times previously hit without a break through. It is hard to say whether there will be enough strength for the momentum this time to keep this pace or, as it happened the previous two times, the pair will bounce back once again. In facts, as big investors are still recovering after Christmas and the New Year celebrations, it seems the market in these days is driven by small investors who are mainly betting against the US dollar (more than on the sterling itself). But things may change as soon as the big players are back in the battle field.
According to our experience, we already saw situations like this in the past that suddenly take a different path as soon as the big money comes in in the playground, so we remain at the window for the time being, paying particular attention to this level, waiting for the right moment to enter the market.