The British Pound was the weakest link among major currencies this morning. The wave of USD buying was one of the reasons for that, the other one being the run for safety.
That's two reasons why the GBP was being sold heavily, but now GBP is back up at the top and that's two reasons for that as well.
One of them is the London fix. London fix is scheduled at 4 PM GMT everyday. At that time big money changes hands between banks, hedge funds etc. This latest GBP move started at that time.
Then, the move extended as British PM May delivered some comments regarding China. It looks like UK is going to team up with the giant Panda now. Well, GBP pairs are about 150 pips higher, which is a selling opportunity. GBP/JPY presents the best odds and the best return potential.
About the author
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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