Cable taking dollar surge in its stride as EUR/GBP tumbles

Liquidation of long EUR positions have been seen across the board this morning as the dollar experiences a moderate corrective rebound. Cable is finding support in the 1.6520s in the near-term while EUR/GBP retraces yesterday’s strong rally following the inflation report from the BOE. We’ve taken out the 61.8% retracement of the 0.8942/0.9064 rally and it’s now looking at revisiting the launch pad back at 0.8942.