Good rotational pull happening here. Dollar has popped slightly in Tokyo session and the wires claim we are catching up on rate hike expectations per the Fed. The dollar has been tricky as of late, but we have generally just been waiting for the right time to get long with size again. These levels are still good, but we scaled in prior much lower. Max pain right...
With Bank of England out of the way - impulsive move down is being met with buyers. This should begin to retrace and find new selling pressure around 1.2550/1.2600
Looks like the potential for a larger market rotation lower on JPY crosses.
This favors the bullish care since we are in a predominate bullish trend, but unlikely to last long.
Look to get short GBP exotics... I like GBPCHF short the most but many are setting up. The advantage of this situation is that the GBPUSD sits at a good support level, meaning if you can hedge by going long GU and then short some of the exotics. At least that's the simple explanation. Quick note, we are looking to get into GBPCHF and other exotics for way more...
Early signals point to a risk off market in the making. However, should be cautious here. Daily timeframes still need to overcome the key 24.60 barrier. We have seen this before, and markets quickly reversed at those zones. However, it does so far look positive for bullish VIX action.