Most reports I’m reading from the big Prime Brokers show that professional speculators remain quite long of GBP but judging by the price action overnight, the market still has a healthy appetite to grow these long positions.
Cable gapped higher in early London, from 1.6840 to 1.6920 and has been unable to break back below 1.6860 since then. As long as EUR/GBP stays offered, a buy-dip strategy in cable makes sense and I’d suggest 1.6860/70 as a buy zone with stops back under 1.6840.
