GBP/USD (current price: 1.2230)
The Pound is still trading close to its lows against most of its major counterparts, despite the current consolidation and the bounce this morning, as the uncertainty regarding the Brexit continues to weigh heavily on the currency. Both Scotland and Northern Ireland are looking for ways to halt the execution of the decision, or even exit the alliance, as the costs of the exit seem to outweigh the benefits. The pair had a few calm sessions since getting close to 1.20 last week, but it failed to make up the lost ground so far, despite the oversold indicators.
Our assessment: The cross remains in a strong downtrend, with the Dollar still being pushed higher by rate hike expectations, although yesterday’s bearish day might be a start of a deeper correction.
