Good selling interest seen over year-end and again o/n from speculative funds and elsewhere, albeit in thin conditions, supports my caution expressed about going long again on 31 Dec.
We’ve been down to 0.8285 where we had decent buy orders leading up to Xmas and which I fully expect still to be in place. The selling interest has added to the GBPUSD demand.
A break down through 0.8280 targets 0.8265 then the 0.8240-50 area with an option barrier reported at 0.8250 still. Expect rallies to be sold around 0.8300 and then 0.8320-30.
The demand down here is adding to the resistance on cable around 1.6600 but either pair breaking out will undoubtedly trigger a reaction in the other
EURGBP H1 2 Jan
