I’m not going to post a chart right now (no time) but here is my two cents…
GBP has shown no real desire to climb higher, although if you buy into seasonality then you would expect a leg up but I am not convinced.
My macro view on it is this…Buy strength and sell weakness so for that reason I am short biased on cable. Problem is there isn’t much downside before you hit a wall I mean look at cable on a weekly or monthly chart it’s at the bottom.
Now for DXY the dollar index shows continual strength and it is tuff to bet against the US economy. Now you could listen to the “good folks” over at CNN and how they are basically rooting for a depression but if you look at reality right now we hold a strong position globally and at the end of the day I believe “the deal maker” will solidify a trade deal with China. Look at japan… Trump is not unilateral he deals with country’s case by case and I wouldn’t be surprised if he doesn’t come up with a trade deal with the UK. That in itself might bolster the Sterling.
So for me I would wait for the Fed to try and hurt Trump to be truly bearish on dollar and I am convinced they will try and tank the US economy by 2020.
If I see anything interesting I will post it but for me right now I am only interested in selling rallies until this mess gets sorted out.