The pair was already heading up through 0.8400 when the CPI data came out and didn’t need any excuses to surge higher to 0.8438 taking out a layer of sell orders along the way.
The 0.8440 area was pivotal on the way down and so it’s proved on the way back up.
Bids coming in at 0.8425 have held the retreat so far since the post-CPI rally and we’re trying once again at 0.8440 as I type.
Other bids now down to 0.8380 with 0.8400 pivotal
More offers lined up at 0.8450 and 0.8465, then larger at 0.8480 and 0.8500.
I sold my 0.8336 longs at 0.8393 and was looking for a dip to buy back, which I didn’t get, so have not traded this rally yet but I’m looking to sell between 50-65 for a short-term play. I’m not going to chase it though and still happy to trade both sides of this pair while still fundamentally remaining bearish for GBPUSD.
Post ECB we were down at 0.8300 and the world was predicting the end of the world for the euro. Today’s UK CPI data has surely just given euro bears another chance to sell but of course tomorrow’s BOE quarterly inflation report may have a say on that.
The forex market has the memory of a goldfish sometimes.
EURGBP HI 12 Nov
