Sterling was the big loser on the way down and it is now leading the recovery. This currency trades like no other and once it starts going in one direction you can throw your technical handbook out the window and hang on for the ride. There will of course be pullbacks but I firmly believe that we are headed to 1.60+ in the cable and 160+ in GBP/JPY. We must remember that sterling was massively oversold and we are only headed back to more equilibrious levels.
If this pans out, we will probably see the JPY crosses rally across the board. AUD/USD should rally towards .8000 and EUR/USD will trade again in the 1.40’s.
On the day; buy AUD/USD on dips towards .7150 where Sovereign buying was touted last week; buy cable on dips or even on a 1.5000 break with a tight trailing stop below the previous highs at 1.4960; USD/JPY should trade in a broad 98/100 range.
Good luck today.