December 9, 2022

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Cable starts to crack as dollar keeps firmer on the day

1 min read

GBP/USD falls to a fresh one-month low of 1.4052

GBP/USD D1 15-06

The rangebound trading in cable looks to be breaking now as the dollar climbs across the board going into the North American session.

The pair was already on the ropes yesterday but survived the first test, sticking near 1.4100 but the support region around 1.4073-86 appears to be giving way in a firm manner now and that sets the stage for sellers to accelerate the downside.

There isn’t much support in the pair until 1.4000 from a technical perspective.

Keep an eye out on dollar pairs here with USD/CAD also on approach to 1.2200 and EUR/USD starting to inch closer towards 1.2100.

It looks like the market is tilting towards positioning for a slightly more hawkish Fed, not in terms of taper message but perhaps with regards to the language and a potential to set up tapering expectations going into August or September.

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