As I suggested a couple of weeks ago, the only way to trade Cable at the moment is on the long side, and following a breakout abouve the psychological barrier of 2.000, the pair now seem set to move towards the 2.03 level, and maybe higher in the short term. The only danger to this is if prices bounce off the previous level of 2.0088. If this is penetrated then I would expect the pair to break into new high ground above.
Since May 2006, prices have been touching, but not penetrating the 20 day moving average, which is always a good sign. It seems unlikley that there will be a change in sentiment in the pair, until interest rates globally start to fall. At the moment, there seems to be no sign of this occuring, with rates rising across the board! (see yesterdays post on the NOK )