Yesterday I posted a bullish call on GBP. It was a good one, as we hit the 55-day moving average target in cable and made 130-pips of progress in the short EUR/GBP idea.
The cable trade looks to be over, as we completely retraced. I’m not entirely sold on shorts here but I’ve lost confidence in longs.
It’s a different story in EUR/GBP as the downtrend looks as solid as ever but I’m not sure there is enough reward in new positions here. There is some solid support at 0.8284.
The event to be mindful of is the final revision to UK Q3 GDP at 0930 GMT. No changes are expected from the +0.5% q/q reading.
