Plenty of interest in the GBP during the London session yesterday, and if you want to trade it then that’s the time to get involved, not during boring Asian trade.
Firstly there were some significant EUR/GBP flows which are probably related to end-of-month Central Bank demand. This demand helped EUR/USD rally slightly and drove cable below 1.5900. Trailing long-stops were then triggered and cable fell to 1.5850 but then reports emerged of Sovereign demand out of the Middle East and the Abu-Dhabi/RBS story was recycled again. This of course encouraged the cable to rally back towards 1.5900 (and we get an 8 pip range!).
