Pound sellers prevailing again 9 Feb
GBPJPY supply/yen demand notable again and down to 151.80 from 152.60 with USDJPY also capping around 109.30 as per the order board post.
Also as per the order board EURGBP has held 0.8775-80 and now 0.8812 adding the GBP supply which has pushed GBPUSD down to 1.3910
Soggy UK data not helping either and contrary to the MPC’s strange/misguided/bonkers view (imho ofc) that all is good with the UK. Seems they have an agenda which involves keeping a bid under GBP to help beat commodity -driven inflation. If that is the case then it reduces the need for interest rate hikes so I stand by my long-held view that any hikes are to create wiggle room to cut on the next crisis. Same for US Fed.
I suggested GBP rally sells yesterday and said I sold GBPUSD again above 1.4000. I remain of the same opinion. GBPJPY remains the prime mover and same rally-sell strategy there too.
Mirror mirror on the wall…