I’m hearing that the same bank that sold cable aggressively yesterday through the 1.40 level was also the main seller earlier when we rallied towards 1.3850. Stops are building now below 1.3740 and sentiment is bearish as we head into the London session. The poor RICS data from earlier today will also weigh on the pound.
Elsewhere there is talk of very solid buying interest in the EUR/USD around 1.2550 and selling interest around 1.2700-20 so that pair might be rangebound for another few sessions.
