I’m of the view that we may be trying to form a base near 1.6600 and return to the bull trend. I’ve been buying dips over the last two days but I’m still a bit worried, especially by reports from the EUR/GBP market.
The market is undoubtedly still short of the cross and I’m hearing reports of heavy stops above .7970. If they go off, cable will struggle to make any gains.
I’ve reduced my long position above 1.6600 and am looking to trade a tight 1.6570/1.6610 range for now, whilst still maintaining my bullish core position.