After a nice rally from 1.6000 in the last two trading days, I’m happy to book some partial profits ahead of previous resistance at 1.6270. As Gerry mentioned earlier, some of the weekend press reports in the UK were not overly positive regarding the UK economy and that could lead to some GBP bearishness in early European trade.
The well-chronicled offers between .8735/50 in EUR/GBP managed to slow the bullish momentum down there but now that they’ve been filled, the upside is looking more susceptible. I think we need a few more days of trading information before deciding on the next GBP move but in the meantime, I’m going to continue to play the 1.60/1.6250 cable range with a long-term core long position still in play.