GBP/USD (current price: 1.3307)
The oversold bounce ended on Wednesday as we expected and the pair fell sharply yesterday, as the Bank of England decided to expand its Asset Purchasing Program. The British GDP came in at 0.4%, in line with expectations, while the Current Account Balance was much worse than expected, adding to the downward pressure. The cross will likely test the 1.30 level in the coming weeks, as the financial system remains under pressure.
Our assessment: The Pound is still looking bearish following yesterday’s drop, as the extended QE program will likely weigh on the currency as well, besides the Brexit.
