Plenty of bottom-pickers in the GBP crosses
As you all well know, I’m an inveterate contrarian and this trait is currently on show through my short EUR/GBP play from Friday. Unfortunately I do not think that this is a good position and I’m exiting with a slightly bloody nose before I do any more damage.
It seems to me that most traders are trying to pick bottoms in the GBP pairs like GBP/AUD, GBP/JPY, EUR/GBP and of course GBP/USD. In fact no serious speculative traders that I’ve spoken to in recent weeks is heavily short the pound. We know already that the big real money players are very short sterling but they have deep pockets and limitless patience. Leveraged speculative players have neither of these!
With some Brexit deadlines starting to emerge, the focus will return to the potential GBP downside and we can expect another serious test of those big technical support points in the above mentioned crosses.