Not every technical break is followed by a breakdown but the techncials and fundamentals were aligned for cable.
The 1.30 level held on a bunch of tries but after the Bank of England recognized that it would be tough to curb inflation and avoid a recession, the breakdown began to happen.
Sometimes the best trade is to simply wait for a break.
That’s a 400-pips straight line move or 300 pips if you waited for Friday’s close to confirm the breakdown.
There are plenty of charts out there right now that look just like this. It’s not always easy to go with the break, but (for god’s sake) please don’t try to catch a falling knife.
When something breaks like this — or like yen crosses last month — the trade is always to go with the trend. There are times when it reverses but the odds are in your favour.