The pound is still feeling the heat after UK data 4 May 2016
The underlying euro demand that I've been referring to is still with us this morning and with EURGBP taking out offers into 0.7925 we've posted 0.7936 so far.
That in turn, ( surprise surprise, not) has given GBPUSD a shunt back down to chew through bids at 1.4480 to post 1.4472 so far.
The relief rally we saw above 1.4500 after the soft data was a case of sell-rumour/lead and buy-fact into and post-data, and the second-wave move was telling as to GBP softness again.
I still expect good two-way business in these fragile and ever fickle conditions but remain a GBP rally seller as my preferred side.
Currently 1.4483 and 0.7932. More bids/demand at 1.4470 and 1.4450. Supply into 1.4500 and 1.4520-35. EURGBP has more offers/res at 0.7950 and 0.7970.
