Sterling shorts unwind as EUR/GBP breaks support – ING

ING’s Chris Turner reports that EUR/GBP has broken below the key 0.8600/8610 support level, prompting the unwinding of expensive, stale sterling shorts. The move is seen as particularly affecting asset managers who had built up short GBP positions.

The break lower in EUR/GBP suggests that bearish bets on the British pound are being reduced, potentially supporting GBP in the near term. The development highlights ongoing market dynamics in the GBP/USD pair as traders adjust positioning.