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14 Aug 2014
Focus now turning to the GBP crosses - FXWW
FXStreet (Bali) - According to Sean Lee, Founder at FXWW, focus is now turning to the GBP crosses following a dovish BoE on Thursday.
Key Quotes
"Like we mentioned a couple of days ago, pairs like GBP/CAD are heavily over-positioned and ripe for some sharp reversals. The BOE quarterly inflation report sent the GBP bulls scurrying for cover and there could be more pain in store if big support levels (like 1.8100 in GBP/CAD) are broken."
"That said, the up-trend in cable has been very strong and I remain a committed USD bear so I expect any big losses in the crosses to come from the ‘legs’ ie if EUR/GBP is to have a big rally, then it will be primarily driven from here by a higher EUR/USD and similarly any big fall in GBP/CAD will come mainly through a lower USD/CAD."
Key Quotes
"Like we mentioned a couple of days ago, pairs like GBP/CAD are heavily over-positioned and ripe for some sharp reversals. The BOE quarterly inflation report sent the GBP bulls scurrying for cover and there could be more pain in store if big support levels (like 1.8100 in GBP/CAD) are broken."
"That said, the up-trend in cable has been very strong and I remain a committed USD bear so I expect any big losses in the crosses to come from the ‘legs’ ie if EUR/GBP is to have a big rally, then it will be primarily driven from here by a higher EUR/USD and similarly any big fall in GBP/CAD will come mainly through a lower USD/CAD."