The wild volatility is telling us something I’m just not 100% sure what it’s saying. My initial instinct is that the sharp rebound rallies are what we should be focussing on. We have had a huge rally in the the pound over the last few months and the market is trying to pick a top but it looks as if cable isn’t ready just yet to call an end to the upmove. EUR/GBP jumped 100 pips in early London and then gave it all back again. We hear that all the big shorts in the market have now squared up but that’s not the way it’s trading. The wild gyrations in cable between 1.62/1.66 are likely to continue until one side gains the upper hand.