A bit of action in the twilight zone as USD sellers prevail 17 Jan
USDJPY posting lows of 113.35 and GBPUSD has now breezed through 1.2100 to post 1.2136 with the market perhaps getting ahead of itself in front of today's Brexit speech from UK PM May at 11.45 GMT
Given that GBP pairs gapped lower in Asia yesterday after the week-end news and the market's had plenty of time to sell, it might be expected to see some short covering. And who's to say that hard Brexit won't be the best option for the UK?
I did say in my piece here that we'll see pressure on the pound " if only on a sell rumour/buy fact " scenario and that seems to be the case for the moment with GBP failing to hold below 1.2000 then 1.2060.
This latest move lower on USD may be just one more squeeze and GBPUSD has more sellers into 1.2150 where I would suggest some shorts but with better value between 1.2180-1.2200 for the moment. EURGBP bids/support around 0.8780 then 0.8760.
Should be a lively day ahead.
