Not one of my favourite indicators but lots of people watch out for them. It didn’t quite manage to post a close below 1.6126 but there certainly is an argument here that an interim high might now form at 1.6275.
Other potentially bearish factors for the GBP; a possible renegotiation of Irish debt and subsequent haircuts for senior bondholders, some of the bigger ones are British banks; and the fact that some of the bigger Middle Eastern players were selling aggressively above 1.6200.
I’m still bullish overall but I’m booking some partial profits just in case.
