GBP/USD (current price: 1.3377)
Yesterday was the second positive day for the Pound, following the historic decline that took place after the Brexit vote on Friday and Monday. The currency gained ground on the Dollar today in calm trading as Cable rose above 1.35 for intraday high, but declined somewhat in late trading to finish well below last week’s closing price. The long-term picture still looks bearish, as the rebound has been weak and Brexit fears should still weigh on the currency in the coming weeks.
Our assessment: The short-term bounce might have ended yesterday and the pair could be headed for a re-test of the lows, or at least the support near 1.3225.
