GBP/USD (current price: 1.3310)
The pair had yet another volatile session, although the daily range was much narrower than on Friday. Cable hit another new 30-year low yesterday as it fell as low as 1.31, with no meaningful bounce saving the Pound at the end of the day. Traders remain bearish towards the currency, and the European banking system seems even more fragile following the unprecedented moves. The pair hit a high over 1.70 back in 2014, and it is down almost 30%, with the recent decline only accounting for a relatively small amount of that.
Our assessment: GBP/USD got close to the 1.30 level, and some investors now think that the pair might drop below the crucial level before starting a significant correction on the upside
