Switching long cable into short EUR/GBP position
I’m still of the view that cable will bottom out sometime soon but whether that’s at 1.5600 or 1.5450, I really cannot tell. EUR/USD looks terrible and with the ECB flagging more easing measures, the downside pressure is only going to increase. I missed the boat on Friday afternoon and we are now significantly lower, so selling EUR on the crosses looks like a better proposition.
EUR/CHF is another variable, and as the pressure on the 1.2000 floor increases, so also will the SNB sales of EUR/GBP, EUR/JPY etc as they sanitise their purchases.
I’m switching from a long cable to a short EUR/GBP position, keeping my stops well above .8050 for now and with an open downside target. If this pair accelerates lower, we could see a very quick 5% move.