GBP: Consolidating strength, always a good sign
GBP/JPY made a sharp impulsive move this week which has certainly helped our bullish cable set-up and our next target is around 1.38/1.39. We are currently consolidating quietly near recent highs at 1.3275 and I expect support levels to be very solid now in the 1.3030/1.3130 window.
Macro hedges are tending to be short GBP across the board and I’m hoping that some positive Brexit headlines might encourage these hedges to start unwinding. The fact that GBP continues to show strength despite the ongoing Brexit uncertainty is giving me even more confidence.
In short, stick with the plan, buy into any decent-sized dips and book interim profits on impulsive rallies.