“Investors Reduce Short Positioning on GBPUSD in Drastic Fashion Following May Press Conference”
By FF Newsroom · 18 April 2017
Jordan Hiscott, Chief Trader at ayondo markets
“After the initial rumour of a UK General Election circulated the markets, GBPUSD abruptly dropped from 1.2580 to 1.2505. The fall in Sterling likely came from the fear that as long as Corbyn leads the opposition, the potential expanded Tory majority could all but seal a ‘hard’ Brexit, with potential implications of no trade deal with the EU at all or agreement for the free movements of people.
“But since the press conference ended there has been a swift change in sentiment, with GBPUSD moving from 1.2505 to an intraday high of 1.2645. At this stage it feels like short positioning on the pair is being reduced in drastic fashion.”