FXstreet.com (Córdoba) - Cable is collapsing across the board on Friday after GDP data. EUR/GBP rebounded sharply at 0.9000 and rose to 0.9193 posting a one-week high. With recent moves the pair confirmed a daily uptrend line. Currently it trades at 0.9192/95, 1.65% above today's opening price. The pair is posting it biggest daily gain since April.
Kenneth Broux, technical analyst at Lloyds TSB Financial Markets affirms: The uncertainty with regard to the BoE's position on QE argues for long volatility strategies to be maintained. Vol spreads in GBP/USD and EUR/ GBP have narrowed considerably this month and are likely to stay fairly tight in the run-up to November 5th (Monetary Policy Committee meeting).