Yesterday saw the cable fall during London trade to a new medium term low near 1.4835 after some horrendous economic data. They will walk in today and see that the GBP has rallied 100 pips from those lows and it will be interesting to see what they make of that. What was also interesting yesterday was that our inside man, the flow guy, was able to tell us that the big players were lined up ready to buy dips (haven’t heard from him today, might have been on the Moutai last night! 🙂 ). Perhaps the fact that prices rallied after poor data is an indication that the market has fallen far enough for now? The contrarian in me will look for an exhaustive sell-off to 1.4800ish and then a chance to hop on?
