Old cable traders made to feel young again; and cable heading higher
It was a crazy trading period for the cable whilst the BOE were issuing their forward guidance. It fell by 150 pips, and then rallied 300, and that’s not to mention all the mini moves in between. Made me feel like a 25 year-old spot dealer again 🙂
What I gleaned from the price action is that the market is bearish but wrong!
Personally I think the cable bears should start forgetting about levels below 1.45 and come to the realisation that the GBP is heavily over-sold already on historical indicators (GBP/AUD, EUR/GBP to mention two) and is due for a big bounce. I’m looking to re-instate longs on any dips back towards 1.5300.