FXWW News/GBP crosses/Trade Ideas

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.

  1. Hi Sean,
    What is the fair value level in GBP/AUD? It is heading higher from 1.45 and presently at 1.725 and I am not getting any good signal on this pair. Will it go towards 1.65 before heading higher again or something opposite?

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