Liquidation of long EUR/GBP positions is the major flow at the moment as the market got caught with too many on the short GBP side of the ledger. A painful adjustment is underway, and EUR/USD is getting caught up in the wake.
Some are blaming BP’s dividend-related GBP buying for the squeeze in the pound today. If that is the case, then it-is a one-off and you can fade strength, if that is your preference.
Hourly trendline support for EUR/USD comes in now at 1.5002. EUR/USD trades at 1.5012.
