The risk revival gained traction yesterday. Activity was greater than we were expecting as some markets, like rates, broke decisively lower. As the European equity markets approach their recent range highs and the breakout levels above, the going is likely to get tougher for the risk revival. Nevertheless, in the short term, the divergence signals last week implied that range highs can be overthrown; GBP/USD closing above 1.5720 would suggest a run at 1.59 before we would again look to sell.
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