Cable is rallying nicely, presently at 1.4930. Technical resistances now lie at 1.4950 and 1.4970. The pairing is being bolstered by the better tone to stocks this afternoon, as markets recover their poise after the release of the poor Chinese GDP data.
The market will still have in the back of its mind recent reports of sovereign interest to diversify out of the euro into likes of sterling, aussie and canadian dollar. The interest is unlikely to have been exhausted quite yet.