 Hello, good morning, welcome to CMC Markets on Thursday the 28th of July and this quick look at the pound given that sentiment towards sterling continues to be very very bearish ahead of next week's Bank of England rate meeting but I think when sentiment starts to get overly bearish or you know significantly bearish that's time for me to really take stock of the situation and really look at as to whether or not this is starting to become a one-sided trade and certainly when we look at interest rate probabilities that does that does appear to be the case as things stand at the moment looking at this Bloomberg chart which I just put up on the screen we can see that markets are assigning a 100% probability that the Bank of England will cut rates from the current 0.5% to 0.25% at their meeting next week and a large part of this bearishness towards sterling has you know been exacerbated somewhat by Martin Weill's comments earlier this week but my experience in markets has always talked to be a little bit cautious about a direction of travel when ultimately the markets start to become to one way and ultimately positioning is probably at its most bearish in terms of sterling for quite some time so I've decided to have a quick look at some of the key sterling charts that really sort of dictate my overall view of the pound over the course of the next few days and weeks and ultimately what I've seen gives me a little bit of cause for concern and I'm minded to believe that maybe we could well have seen a bottom so let's first and foremost start with the cable chart because I think the cable chart here is quite significant I've talked about this in great length this week in terms of the lows that we saw in early July and as you can see from this chart this four-hour chart here we've got a nice little trend line coming in with support just below 131 it gets slightly more interesting when we look at it on a weekly basis we can see potentially a potentially smotherly bullish reversal here on the pound against the dollar we call this in candlestick parlance a piercing pattern however don't just look at cable look at the sterling crosses because they can give you important clues as to the direction of travel the potential direction of travel and potential warning signs of a reversal so let's look at sterling in because sterling in is very very interesting in the context of this overall sterling move so we can look at this chart here and again we've got potentially a bullish engulfing week which does appear to suggest that maybe the risk is more to the upside for sterling than the downside not only sterling in let's look at sterling euro once again a similar sort of pattern is being displayed on the sterling euro chart which would appear to suggest that potentially we could see a potential for sterling gains against the euro so long as we don't make new lows and I'm going to finish off with sterling Swiss because again here with respect to the sterling chart we have again a potential bullish reversal so you may hear an awful lot about potential further sterling losses over the course of the next few days but be warned the weekly charts are posting the potential for a significant reversal in sterling and potential upside rather than downside so that's it for this daily market update this is Michael Houston talking to you from CMC Markets