I like the way this trade is starting to develop and I think we may be only in the early stages, especially in AUD/GBP.
The market is uniformly bullish AUD and bearish USD and is positioned accordingly. No matter what the good news is from now on for the AUD/USD, I personally think the market is too ueber-full for it to go much higher. Selling rallies from here for a move back into the mid-80’s is my preferred strategy.
The GBP is turning the corner I feel and with the market still unwilling to embrace long USD positions, I feel any change in sentiment may manifest itself in a stronger pound.
That’s how I’m starting to view the world and you never know we might even see Gerry’s 1.80 by Christmas.
Good luck today and TGIF.