Flows and Orders/FXWW News/GBP crosses/Trade Ideas

EUR/GBP: Talk of a barrier at .8450

Lots of people trying to pick a base in this pair which usually means its headed lower. There will be some protection ahead of .8450 with stops below.

Cable looks very constructive to me and I expect a test of 1.5760 in coming days.

(Talking my position as always, but if I don’t…..).

  1. I’m expecting a higher GBPUSD too. Services PMI tomorrow will probably beat expectations and the pair will rally again. There isn’t anything new to be expected from the BoE, so I will watch the USD news from then on. I will try to short any highs to 1.57 with tights stops, waiting for the Non-Farm Payrolls on Friday. If they come out strong, USD should rally and GBPUSD would form another top around 1.57. And vice versa of course. In case of poor employment numbers we would probably see a break of 1.5700/50 highs. That’s at least my plan for the short-term. In the long-term though I don’t know what to expect from this pair as GBP should strengthen due to improving UK economy, but USD should strengthen to on the back of Fed tapering and implications of hiking rates in the next couple of years.

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