I’ve been whipping this particular horse for a few weeks now without a whole lot of success and now I have thrown the rest of my meagre ammunition at it. My ‘feelings’ have unfortunately been a bit unreliable of late but I am going with them again and I have increased my cable position to be close to limit short. I’ll be cutting half the position at 1.6490 and the other half at 1.6590 with an initial target at 1.6050 and a view for a move to 1.56ish in the next few weeks.
My view is that EUR/USD and AUD/USD have hit their upside limits and are now retracing but that GBP will outperform them on the way down. EUR/GBP should find support very quickly on the .85 handle and continue to move higher towards .90.
There has been little or no good news coming out of the UK and I don’t expect that trend to change anytime soon. Plus it’s never too late to sell sterling!
