The stops below 0.8430 certainly kicked in eventually and we’ve been down to 0.8403 so far ahead of the next strong buying interest at 0.8400
Funds and proprietary desks were noted sellers in that move down, accelerated by the downbeat EU GDP forecasts, and looking for a target around 0.8350
The bounce is currently stalling at 0.8415 and now sits back at 0.8409. Sellers will be around all the way back up to 0.8430 and then 0.8450-60.
It was certainly a strong services PMI release, well beyond expectation, but I still think ( as does Jim I believe) that the headline data doesn’t truly reflect the underbelly of the economy and particularly any strong growth hoped for from household spending.
The currency market is desperate for direction though and will feed off this for a while now.
Good case at these levels for both GBP bulls and bears, but if you’re in any doubt then stay out. The fickle finger of forex is very much to the fore.
EURGBP H1 Nov 5
