Cable: M&A news could weigh on GBP over coming sessions

AstraZenica has rejected an improved bid from Pfizer to the tune of GBP69 billion. If this had gone through it would have led to a lot of GBP buying and we may even have seen some speculative buying in recent weeks in the hope that it could eventuate.

I’d suggest that the GBP might see some profit taking in the next few sessions, especially with CPI and retail sales tomorrow. GBP/JPY and particularly GBP/CAD are my favourite vehicles at current levels.