GBP/USD had an interesting day, as it looked weak for most of the session, only to pop in the late hours of the US session. There is a rumor that the Chinese are coming into Italy and buying bonds, and as such - risk on trades got a boost. We feel however, that this is a bull trap forming as their is plenty of resistance int he 1.60 area.
The GBP/CHF pair normally follows risk appetite, and rises with a gain in risk taking environments. The pair fell on the session though, and with the SNB sitting below willing to intervene at will - the fact this pair fell shows us that the Pound might simply be weak, and somewhat confirms our suspicions about the GBP/USD forming a bull trap.
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