A good start to the week for GBP pairs 26 March
A combo of positive Brexit talks in Brussels last week, expectations of a May interest rate hike and good risk-on GBPJPY demand has pushed the pound higher this morning.
Regular readers will know I prefer to play GBP pairs from the short side selling rallies but I've been in this game long enough (38 years and counting) to know when to keep my powder dry. Now is another one of those times when nothing is a real cool hand but GBP bulls will not care one bit. We've been seeing tight ranges lately ( very tight in my long years of trading and market making) and I don't see much changing on that front anytime soon.
As always, timing is key and that includes getting the time right to sit on your hands. That's a skill many fail to learn and/or employ.
GBPUSD has now chewed through 1.4200-25 resistance/offers to post 2-month highs of 1.4230 with GBPJPY up to 149.62 and leading the way again. Offers/res at 1.4250/149.80-00 and don't forget it's month end and the usual EURGBP demand could help cap cable rallies too.
I still think there'll be opportunity to fade on both but for the time being I'm happy to just keep jobbing USDJPY from the short side on rally sells when value presents itself, currently 105.20-30 then 105.50.
Large option expiry interest at 105.00 today will help keep the pair contained so we will expect to see demand between 104.80-00 still.
GBPUSD
GBPJPY
