GBP crosses

GBP: European session overview

  • I’m bullish EUR/GBP at the moment and I think this pair should hold above .8040 roughly, before the next bullish leg initiates. There is the possibility of end-of-month buying here which should also help. No major orders being reported at the moment.
  • GBP/JPY shows plenty of the usual volatility but its hard to find any short term trend. It needs to spend some time above 128.35 in my opinion or otherwise could slip back towards the lower end of the range near 127.00.
  • Cable has been totally direction less in recent times and further range trading between 1.5920/1.6120 seems likely. Professional positioning is almost flat though I’ve been advised today that retail accounts are around 70% short.

Talking my position here (long EUR/GBP), but overall I prefer GBP shorts across the board.

  1. Hi, Sean,

    Any particular reason for your bearish Pound view? I collect that UK is among first to declare business growth among G7, compared to lousy outlook for EU, AU, etc.

    Thanks

  2. Its just a short-term bearish phase I think Mike, led by the crosses primarily EUR/GBP. I don’t look at fundamentals for short-term moves ie over a few weeks. The market can forget about the latest GDP data very quickly and both King and Bean have been warning that next data in Q$ will be much worse (Olympic effect last Q)

  3. It looks to me like its got the capacity to surprise a lot of people on topside? We could see 13250, then whole world gets bullish so we sell there, usual rules 🙂

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