Intraday Market Thoughts

Sterling's Carnage

by Ashraf Laidi
Aug 13, 2014 20:26

Following today's GBP carnage on those UK earnings figures and dovish BoE inflation report, has our positive take on GBPUSD been completely invalidated? Cable will post its 6th consecutive straight weekly decline, which is the longest losing streak since that ugly Nov-Dec 2009. But as it approaches its 200-DMA for the first time in 12 months, is time to issue new longs? The key question is how far will any longs reach? Or, is their fresh downside beyond 1.66?  Monday's Premium short in GBPAUD is currently netting 180 pips as the cross posted its biggest daily drop since January. This Premium trade alongside today's Premium call are found in the latest Premium Insights.


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