GBP/USD (current price: 1.2944)
The Pound is stuck below the 1.30 level after collapsing below the key resistance to levels not seen since 1985 last week. The Bank of England will be in the spotlight this week as investors expect a rate cut by the central bank to fight off the recessionary effects of the Brexit decision. The pair remains close to its recent lows despite the relatively positive international sentiment with strong resistance levels above the current rate at 1.30, at 1.315, and just above the 1.35 level.
Our assessment: GBP/USD is still in a strong downtrend since the vote three weeks ago and the sentiment remains bearish towards the pair despite the deeply oversold state of the momentum indicators.
