GBP/USD (current price: 1.4142)
The Great British Pound was in the spotlight again, as the ECB scheduled an emergency meeting for next Friday, the day after the British referendum. The last six polls all showed a lead of the anti-EU camp, and officials are getting more and more worried about the risks of the vote. The yearly British CPI and RPI both missed expectations yesterday, as inflation remains muted in the recessionary international environment. Cable is now close to key support at 1.4040 and around 1.40 after breaking below the short-term rising trend channel last week.
Our assessment: GBP/USD is still trending lower in a low volume environment as investors are anxious about next week’s vote and a possible rate hike by the FED today. The pair might re-test the 1.385 low in the coming sessions.
