It doesn’t make much sense for cable to be falling if the ECB is doing more to stimulate growth. Lower rates will benefit the European economy and spill over to Britain.
It’s more a case of squaring cable positions after 7 days of gains and a failure at the 50% retracement. EUR/GBP flows also part of the equation on bids ahead of Monday’s low 0.8405 and more at 0.8400.
GBP/USD has slipped below bids at 1.5520 but there are more at the big figure. It could fall further today and tomorrow but there is nothing in the news right now screaming ‘sell cable’.
