GBP/USD (current price: 1.4116)
The Great British Pound almost broke below 1.40 compared to the Dollar in early trading yesterday. The currency then quickly recovered following the dovish FOMC Meeting Minutes and the oil inventory data, as risk assets were aggressively bought in late afternoon trading. The currency is now very close to its bear market lows compared to its U.S. counterpart, after already hitting new lows against both the Yen and the Euro. That said, yesterday’s bounce could be the beginning of short-term bounce as traders focus on the strong support near 1.405
Our assessment: Cable looks to be ready for a correction after staging an encouraging rebound on Wednesday, despite the persistent worries about the Brexit.
