As we enter London open Cable hangs nervously above 14-month lows.
The downside break out of the bullish channel was seen last week. But then we were kind of expecting this as the price advance from the lows was in a corrective price pattern.
Early Asia trading has seen a break to new lows, temporarily breaking to a new 14-month low and now waits London and US to open.
At this stage we may not see a decent pullback before the losses resume, but if we do, I would consider bearish setups to sell into any rally towards 1.5678
Bank of England announce their rate decision and accompanying statement. It is pretty much a given there will be no rate changes so traders will listen for any clues form the statement to see if they continue the Dovish theme to bring further downwards pressure on Cable. Conversely if they provide a Hawkish (or less dovish than expected statement) then this may help support Cable.
We have plenty of US data to help keep the bearish trend in-tact. With USD Index pushing to new highs then.