Dips buyers in EUR/GBP has been dealt with harshly today. As Sean has mentioned several times, there was solid demand toward the 0.8180 level but once that gave way the slide in the cross really accelerated. Traders trying buying dips as the source of much of today’s selling is seasonal in nature (for a dividend payment) but we’ve moved well beyond the scope of that flow and have done some serious technical damage.
0.8101/10 is next support for EUR/GBP which has traded as low as 0.8122. As Gerry noted earlier this morning, we’ll get some flow in the opposite direction as Sterling is sold at month end to make a payment to the EU in euros.
