Cable range of 1.40-1.45 still intact but GBP demand noted

Author: Mike Paterson | Category: News

It's been a decent few days for the pound but GBPUSD still range-bound.

US president Obama spent a fair few hours of his brief UK visit trying to scare away a few Leave voters ( Cameron & Co not too far from that little piece of PR) and we saw GBPUSD jump higher in thin Asian trading to post 1.4475 but has since been back to 1.4403.

According to bookies Betfair the Leave odds have widened out to 11/4 from 2/1 and that is lending the pound some support.

I've mentioned before the large DNT ( Double No Touch) option with the extremes at 1.40-1.45, quite probably China but unconfirmed, and we can expect the top side to again present some good resistance should we challenge another time.

For all the huffing and puffing and volatility in-between we've not been going anywhere new in a hurry and even if 1.4500 does break (large stops reported if 1.4505 breached) we can expect further supply into 1.4600. Demand immediately at 1.4400, then 1.4350 with strong support. I prefer to sell rallies still but have said for a while that the pair is presenting good two-way opportunities.

EURGBP sellers into 0.7830 and the cap at 0.7811 so far has helped provide a bid to cable this morning with strong support/demand at 0.7750 holding in Asia. I remain a dip buyer of this pair.

By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose