The chart tells the story as cable falls to session lows after UK retail sales
The soft UK retail sales data sent cable to a session low. The pair is down a half-cent to 1.2706 and is now eating into the post-election relief rally.
What stands out to me is the head and shoulders pattern within the head and shoulders pattern. It's head-and-shoulders inception.
The minor pattern at the highs yesterday resolved with the fall to 1.2730 after the Fed decision.
But that set up another larger head-and-shoulders pattern with a neckline cutting through 1.2730/40. The soft retail sales data helped to definitively break it and now the measured target is a fall back to the post-election lows of 1.2640.
With the BOE up in less that two hours and Carney's Mansion House speech 9 hours later, there are plenty of drivers that could take it there.
