Forex Flash: Fuel for a run of stops on EUR/USD, GBP/USD long - Societe Generale

As Sebastien Galy, currency strategist at Societe Generale, notes on his weekly opening remarks, "the combination of a UK downgrade and a uncertain Italian elections are the fuel for a run of stop losses on long GBPUSD and EURUSD at the opening of the markets in Asia." The fall in GBP, is leading, according to Sebastien, "to a rush for gamma as presumably barriers are taken out" he says. He points out at how GBPUSD had a clean break out of its 2-year range.