GBP/USD is squeezing the bejeezus out of the shorts taken after the truly awful GDP data earlier this week. The sharp reversal in EUR/GBP is also contributing as that pair has fallen nearly a pence top to bottom from yesterday’s highs to today’s intraday lows. Some of the EUR/GBP buying of late has been related to the UK contribution to the Irish bailout, and perhaps those flows have come to an end…
In cable, keep an eye on 1.6030, the top of a triangular consolidation in place for what is coming up on three months…
