GBP crosses: Sell rallies, don’t chase lower

I am still very convinced that we are at the beginning of a serious retracement of the 30-month GBP bull rally but as always, timing is everything.

GBP/AUD has indeed proved to be the lead pair but we need to see some daily consolidation below the previous strong technical support levels around 2.0800 before committing to the more aggressive sell-break strategy. Maybe sit the next couple of sessions out and see how momentum and price action develop.

Cable has halted near the reportedly strong bids at 1.5060/70 and it might be wise to book profits on the next dip and re-sell on rallies back towards 1.5250.

EUR/GBP looks to be basing now above .7010/20 but the market is still wary of being long EUR, so booking profits on rallies towards .7100 and re-buying on dips would seem like a very sensible strategy.

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