It’s always difficult to gauge exactly how much still needs to be done or even how much will be done in total but I think it’s a safe guess that there is a significant amount of GBP/USD to be bought over the next week. When combined with the normal month-end fare, some analysts are expecting a total of around USD7.5 billion equivalent, divided between the 21st and the 25th of February.
I wouldn’t necessarily be turning bullish cable on the back of this news but if you’re already long (like me) then it might be an idea to sit back and wait another week! With the usual month-end Buba buying of EUR/GBP also in the pipeline, EUR/USD bulls also have reasons to be cheerful.