EUR crosses/GBP crosses/Trade Ideas

Cable proving tricky to trade in current environment

Obviously the dominant influence on the GBP at the moment is coming from EUR/GBP, where we are seeing a big unwinding of long-term short positions. Macro players are at least moving to a neutral EUR position, and this is enough to cause a big move in the market.

Cable is stuck in a holding play near 1.6000 and there are plenty of rumours about big buyers and sellers in the market. Risk-reward would seem to favour buying near 1.5960/70 with a tightish stops below 1.5925. There’s also talk of large structural stops below 1.5900 and if they go off, they could be good for a 150/200 pip clean-out, so be wary on the downside.

EUR/GBP is headed for .8800 but it won’t happen in a straight line.

  1. Possible Rehan, doesn’t look likely at moment but there’s always some bad EUR news simmering below the surface, so never say never. Impossible to put a number on it now but there will certainly be retracements (but buy that dip!)

  2. Hi Pete, how about sell them both?? If I had to trade it I would play a 190/193 range with a definite bullish bias. We’re in middle of this now so best avoided and stay patient imho

  3. Thanks, Sean. I took small profit and quit. I bought it at 1.9000 yesterday night. I will try to buy it again at this level if it reaches there. Thanks buddy.
    Have a wonderful Friday 🙂

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