As you know, the US dollar continues to push higher, and the most significant move today is on Cable, which is breaking down towards the 1.30 level after UK inflation softened more than expected to 1.7%. This gives the Bank of England room for more rate cuts, potentially weakening Cable further. However, we could see some near-term support, as the pair shows five waves to the downside. Ideally, a three-wave retracement is expected soon, and that's when we will be looking for more weakness.
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