The Cable hit our target yesterday after breaking above 1.23 and retesting the 200-period SMA, despite the UK’s business confidence hit its lowest since the 2008 financial crisis. Furthermore, the path of Brexit also gets tough with the EU Trade Commissioner Phil Hogan suggesting the UK may have given up on the deal. Markets are now waiting for US President Donald Trump’s conference on China after signaling further sanctions earlier this week. Any negative tone will likely reverse the dollar back up, pushing the British Pound lower possibly towards 1.2250.
Support: 1.23 / 1.2250
Resistance: 1.2360 / 1.24
