GBP/USD: Retraces 50% of Chaotic Intraday Range

GBP/USD sits near its lows for the North American session, changing hands around 1.9957 with dealers struggling to offload stale longs taken earlier in the session amid talk of huge dividend-related demand for the pound. Stops above the recent highs in the 2.0060/65 area were firmly in sight until the rug was pulled out from under the market by a variety of rumors and flows near the London fixing. Some say once the dividend-related bid was pulled, the bottom dropped out of cable. 1.9950 is 50% of the 1.9865/2.0045 rally from the London lows to the New York highs. Further support lies at 1.9935; 61.8% of the same rally.