FX Update- GBP
Real money names forced Cable to fresh lows below 1.8700. Losses have been broad based, with EUR/GBP, GBP/JPY and GBP/CHF all adjusting to intraday lows in line with the Cable losses. A modicum of support is noted from option names, but any recovery is shallow as Cable shorts target 1.8620, which represents a 61.8% Fibonacci level from the 1.7050/2.1160 move. Movement in Cable is also influencing other dollar pairings, with EUR/USD trading on a heavy tone in sympathy with Cable.