Pound losing ground as the session unfolds 19 Jan
Was that GBPUSD spike to 1.3945 from 1.3910 retail sales data-low the last hurrah for the pair with barrier option interest at 1.4000 lurking behind it? Too early to say but we’ve now fallen back through decent demand at 1.3900 Next line of support/bids into 1.3880 now history too as we post 1.3874.
EURGBP offers/res around 0.8830 also taken out the equation but EUR supply tempering gains as EURUSD falls to 1.2263 from 1.2296 highs.
GBPJPY lower at 153.55 and on session lows as USDJPY once again fails to take full advantage of any USD strength. We know GBPJPY is a favoured pair for hedge funds so no surprise to see that falling back as GBP sentiment softens and may indeed be the prime mover.
GBPCHF also on session lows despite USDCHF making a decent recovery this morning to test 0.9580 again.
Still in the week’s ranges so no need to get too excited as I often point out. Flow is all and it’s understandable for traders to take some money off the table as the week draws to a close. Soggy UK retail sales data not helping GBP bulls either.
Good pips to be had again today and that’s really the name of the game. Ours is not to reason why. Ours is just to sell and buy.