Once again we've seen these two pairs joined at the hip and impacting on each other with great effect
Earlier on I highlighted the strong res/offers into 0.7400 and while on that journey higher from 0.7360 to 0.7390 we saw the GBPUSD rally capped, not for the first time in recent days
But the EURGBP offers were enough to help tip the scales this morning in a session which saw the euro giving up, and continuing to give up, a lots of its gains since this time yesterday
Cable has enjoyed a relief rally to 1.5325 after 1.5272 as EURGBP falls back through the decent support at 0.7360 to take on the next layer of bids at 0.7345. More behind into 0.7320.
My simple takeaway, again, is that by keeping an eye on both these pairs gives a clear picture of underlying sentiment both for pound and euro. Ignore their impact at your peril. GBPUSD is running into sellers again as EURGBP bids hold and EURUSD heads lower
Be careful out there, but know there is some clear opportunity too.
See you all tomorrow
