GBP/USD (current price: 1.3103)
The Great British Pound is still trading without a clear short-term direction since hitting 30-year lows against the majors following the Brexit referendum. The currency corrected back below the 1.31 level after last Friday’s hawkish words by Janet Yellen, but the decline was relatively weak, and the 1.2850-1.30 support zone still looks strong. The broad Dollar rally might still lead to further downside for the pair, but a worse than expected NFP number on Friday could lead to a bullish move in Cable.
Our assessment: The trading range between 1.2850 and 1.3385 is still intact, as the 200-day MA remains way above the current rate near 1.41, with further resistance looming around 1.3550.
