GBP looking fragile across the board
A market always looks like it’s most bearish at the bottom but it would be a brave person who would go limit long GBP right now.
- EUR/GBP: Despite a very bearish EUR, this pair has started to bounce again off major technical support at .7750 and perhaps the market is simply short enough already? All shorts are relying on the SNB to sanitise their intervention (sell EUR/GBP to offset EUR/CHF purchases) but if this doesn’t happen then the squeeze starts.
- GBP/JPY: Another heavily positioned pair which is currently being seriously tested after 190 resistance held firm again.
- Cable: Trading bearishly on an intraday basis and the fact that we close today near daily lows tells us a lot. I’m still looking for a good entry level but I’ll probably get cheaper levels going by recent price action.
- GBP/CAD has been another favourite macro position and even though its still in consolidation, a test of 1.7530 again wouldn’t surprise?