I think everyone here knows my sell-rally view/strategy on this pair but I must confess I didn’t see this sharp drop coming today.
Yesterday I sold in the rally to 1.5753 and bought back for 50 pips expecting some consolidation.
Today’s move in cable has been exacerbated by the continuing teflon-coated euro strength for the most part with EURGBP on the rampage higher to 0.8584, producing one of the largest one-day cable falls in a while.
Next decent buying interest comes in at 1.5550 and I’m sure there’ll be many of you queuing up to buy at current levels 1.5575, and that may well be a decent play.
My overall view doesn’t change and I do believe we come lower still, but as Adam said, in his earlier post, with data out the way we’re seeing some positioning ahead of the main event tomorrow. But if that means the consenus is looking for some tapering then I reckon they’re going to be a little disappointed.
