GBP/USD (current price: 1.2189)
The U.S. CB Consumer Confidence Index came in at 98.6; way below the expected level, and that pushed the Dollar slightly lower in late trading, although the Pound proved to be the weakest currency of the day. The BOE’s dovish rhetoric, together with the persistent Brexit fears weighed on the pair yesterday, as Cable briefly fell back below the 1.21 level, close to the lows hit after the “flash crash” of the currency two weeks ago. The pair bounced back, later on, to close near 1.22 with a loss of 0.5%.
Our assessment: The cross is still in a strong long-term downtrend, and a re-test of 1.20 is possible, although the oversold momentum indicators could signal a stronger bounce.
