Or is Part 200?
I highlighted on Wednesday the euro demand and rise in EURGBP was once again helping to stem rises in GBPUSD
Well that was at 0.7160 and 1.5358 and now we're 0.7330 on fresh session highs with cable 1.5338 after 1.5360 highs in Asia, having once again been above 1.5400 since that post but finding 1.5500 too tough to crack
Cynics ( especially mine ) will be queueing up to type that yea, the law of averages says the theory/correlation has to work once in a while but there's no denying the relationship/impact of the two pairs as I've highlighted many times before
With almost every leg of that cable rally this week we've seen various caps and dips along the way, some shallower than others admittedly,and there's been good two-way opportunity with selling still bearing fruit not least of which from the 1.5493 highs
The two pairs acting out a play even as I type, albeit in reverse as EURGBP dips back to 0.7324 giving cable a green light to pop back up to 1.5352 and new session highs
Buy low, sell high in all things and bear in mind correlations and impact across the pairs. Just saying.
