Never underestimate the power of the British pound to negatively impact your P&L. Out of nowhere, EUR/GBP has shot higher and is squeezing both intraday EUR/USD shorts and some of the slow-footed GBP longs who were unable to get out of longs before the dollar surged at mid-morning in New York.
From 0.9071 three hours ago, we’ve rebounded all the way to 0.9130. Words cannot describe the madness that is EUR/GBP…
Cable’s early gains have been fully reversed, now at 1.6342 from 1.6485 in morning trade. Many, I’m sure, we’re betting on the pound holding up better than most as the dollar strengthened. I surely did. But nothing could be further from the truth.
EUR/USD has been underpinned but the rebound in EUR/GBP. offers are seen now at 1.4925/30; stop-loss buy orders from intraday shorts are noted just above 1.4930.
