GBP/USD (current price: 1.2175)
The Pound had another very volatile day as the currency started out the session in a bullish way, but trended lower afterward throughout the day. Cable rose as high as 1.23 in early trading, but closed the session below 1.22 again, as the speculation regarding the details of the Brexit drove the cross all day long. The hawkish FOMC Meeting Minutes caused a late rally in the Dollar, and the pair is lower again this morning as the bearish Chinese data extended the correction in global stocks so far this morning.
Our assessment: Cable is still trading above last week’s panic lows, and a re-test of those levels might be in the cards in the coming days, especially if global sentiment remains negative.
