GBP/USD: Longs Lightening Up on Rallies

Cable is seeing some profit-taking on rallies late in London as dealers take advantage of some of the remaining euphoria over the potential for UK tax reform which will make repatriation of foreign profits tax free. While such a move would be an unabashed positive for the pound, the idea has not even made its way into legislation yet, much less law, so it is very premature to take a position on that eventuality. Upbeat BRC data and an upgraded IMF GDP forecast for the UK are helping underpin the pound this morning as well. Sellers are eyed in the 1.9790/00 area and again toward 1.9820/25.