We GBP traders should enjoy plenty of volatility today, especially during the European session, so I might be in for a long day.
Industrial production data comes first and that will be followed by the BOE meeting, with around 1 quarter of polled analysts expecting an increase in QE. Then of course we have the major optionality in EUR/GBP at .8000 which will act like a magnet. Whilst the GBP continues to show a lot of strength against the EUR, its momentum has seriously waned against the JPY and the USD, so Sterling bulls need to be watchful.
My biases at this stage are: Cable looks moderately bearish in short-term and prefer a sell-rally strategy inside a broad 1.60/1.62 range; EUR/GBP will probably take out barriers at .8000 but will then be prone to a relief rally so I’m thinking .7980/.8060ish range; GBP/JPY is again approaching pivotal support levels so we need a bit more information here (although I’m persisting with my core long strategy).
