A better hour enjoyed by GBP pairs as NA desks enter the fray 12 Dec
I posted earlier on the GBP losses post-CPI data but also warned then of decent support lines on GBPUSD into 1.3300 and EURGBP around 0.8850 and recommended pound-short traders to take some, if not all, money off the table.
Well here we are at 1.3366 and 0.8807 so I hope some of you heeded my words. Another glorious and hopefully profitable, case of either bulls or bears not getting carried away or getting greedy.
Great two-way pips to be had again though for those interested enough to join in. US Fed looms large ofc and while the consensus says rate hike shoe-in we can never say never and therefore caution is duly playing out. In any case, if it is a certainty ( a stance which I don't necessarily adhere to but like the BOE the Fed have probably dealt themselves into a corner) then we can expect a good degree of USD demand to be factored in over the past weeks/months. All to keep in mind when the algos are running around like crazies.
SNB, ECB and BOE decisions/statements also in the mix on Thursday so as always we need to trade the fact.
I'm out of here now so I wish you good trading as always and see you back here tomorrow before hanging up my keyboard for a few weeks.