This is a Double top formation in the cable pair, where price action hit the key 1.2300 area on two occasions and where the UK Prime Minister Boris Johnson has tested positive for the Covid-19 virus.
Traders will be looking for price action to move lower because of the double top and also because of the bad news regarding the Prime Minister, although his symptoms are said to be not serious and certainly we all wish him a speedy recovery and hope he remains in control of the United Kingdom
This is also based on the fact that cable has rallied over 1000 pips recently to reach the high recent high of just over the 1.2300 handle, and where we will expect some profit-taking. Also taking into consideration the dollar index has come off its highs and is currently reversing some of its recent losses, and this would help us in a hypothesis where the cable pair should now move lower.
Standard Lot $1200
Mini Lot $120
Micro Lot $12