I cut my cable longs on Monday morning and am now reducing my GBP/AUD longs as well, just in case tonights UK GDP number turns out to be a poor one. The fact that the technical resistance in cable at 1.6165/75 is still holding firm is another reason for us bulls to tread more cautiously. I remain core long GBP/JPY and am still holding a small GBP/AUD long and I will reassess tomorrow.
BOE board member Adam Posen was quoted last week as saying that the economy is growing better than upcoming data might suggest. These words have led to speculation that tonights GDP number might be much worse than expected. No-one ever went broke taking a profit, so I’m taking the cautious approach.
