Play of the Day: Shorting the EURGBP on BoE Report

In our Bank of England Inflation Report Review, we concluded it with the reasons why we are adding to our EURGBP short as it has traded back below 0.8000.  This is just a recap of the last paragraph where we focused on the EURGBP, rather than the overall negative report.

From the previous post:

On Twitter, we issued another sell in the EURGBP at 0.7996. (Yes, we know we have been perma-bears on this position and our 0.8040 that we are still short on from earlier this month had both been in and out of the money by 100 pips.)

 $EURGBP have long term short, taking new short position here at 0.7996, target 0.7945

— SwiftTick (@SwiftTick) June 26, 2012

Overall, the appearance of GBP strength even before the BoE Inflation Report took place showed us that Forex traders were looking for reasons to get into the currency. Therefore, even after hearing from BoE Governor Mervyn King what we would have thought to be all the reasons in the world to “AVOID” the GBP, and the currency has continued to rally, we view this as extremely bullish.