GBP/USD (current price: 1.2284)
The Pound is still under strong pressure, as Brexit related worries are hurting the currency once again. The renewed banking worries in the Eurozone are also weighing on the currency. The better than expected U.S. releases pushed Cable lower in Wall Street trading yesterday, with the multi-decade lows near 1.20 still being in danger. The cross has been trading sideways around the Christmas holidays, and trading volumes will likely remain low for the rest of the week.
Our assessment: GBP/USD is stuck below the crucial 1.2350 level, despite this week’s consolidation. The 200-day Moving Average is still well above the current rate at 1.3350.
