EUR/GBP steps back from long-term lows | Forex Factory

  • EUR/GBP steps back from long-term lows

    From monetamarkets.com

    Sterling enjoyed the holiday period as it rivalled the aussie as the leading G10 currency. There was some relief in the UK that the new Omicron variant won’t lead to severe restrictions, even allowing for record infections. After the surprise rate rise by the BoE, money market traders have also piled on bets of more increases over the next year. The early start to the rate hike cycle will see rates climb to 1.25% with four 25bp increases expected, spread broadly across this year. This should keep GBP supported over the next few months. Although this pricing seems aggressive, it stands in contrast to the ECB who are ... (full story)

Comment Options
traderathome
Jan 3, 2022 11:17am
Permalink
This "news" wants to persuade us that "The pair has bounced from here but is struggling with the October low at 0.8402, even as bearish momentum has eased. A weak close and sustained move below this level is needed to convince bears to add to their positions...."

Simply, this is NOT NECESSARILY TRUE!

We cannot EVER know how the MMs will move prices next, but we can be reasonably sure that SM will "Buy low, sell high!" So, if SM has gone short at the local highs again, how low the price will go will depend on where SM has also placed their orders to the MMs to "BUY TO CLOSE SHORTS!" We should at least realize that the only bears that count....Smart Money....may ALREADY BE IN and simply waiting for the MMs to drop the price to fill their orders to CLOSE THEIR SHORTS!.......HTMRW.

In other words, the chess move by SM has already taken place. No need for "sustained move below" to convince bears of anything! The MMs, in their own timing, will do SM's bidding.......HTMRW. We should be alert to not fall victim of bias cleverly caged in "news".
Attached Image (click to enlarge)
Click to Enlarge Name: jan 006.png Size: 85 KB
Reply

  • Related Stories

There are no posts to display for these settings.
  • Story Stats