Perky pound but sellers lurking still
The pound has enjoyed a good Asian session after triggering stops 17 May 2016
A bit of head-scratching and some traders citing CPI and Brexit polls but it looks to me that someone went stop-hunting in early Asian thin liquidity.
Some things never change and even back in my day as an Interbank trader in the 80's/90's it was very much the case. Eamonn's old shop, Bankers Trust Sydney, were prime exponents at the time to the point where the AUD trader got hunted down one evening after work and remonstrated with (putting it mildly) by traders from other banks less than impressed with his antics.
GBPUSD had good offers/res at 1.4420 and that broke to post 1.4470 in a rush while EURGBP broke down through 0.7845 and it looks like another stop-hunt ensued down to post 0.7820 in a rush.
Low post so far of 0.7809 with more bids/support noted at 0.7800 and 0.7785. Cable ran into the sellers waiting at 1.4500 and there's more behind that between 1.4530-50 where it capped previously.
Currently 1.4478 and 0.7813 I prefer to sell these GBP rallies still but as the EU referendum looms ever closer some caution is warranted.
We have CPI/RPI/PPI data at 08.30 GMT to throw into the mix this morning and I'll add a few more thoughts on that when the coffee has kicked in !