GBPUSD well and truly through the 1.41 handle now, and down some 220 pips since the Friday highs
More woe for the pound today as GBPUSD now drops to a low of 1.4063. There’s a mixed picture going on right now. Yen buying has stepped up but a rise in EURGBP is adding too. Given the time of the month, we’re probably seeing the Bundesbank scaling in the FX transation for the monthly pound of flesh payment the UK makes to Europe.
As is often the case with very hard and fast rallies, the retrace can be just as violent, especially if there’s a lack of pre-built support levels.
There’s a minor area of support possible around 1.4050 but otherwise the next decent looking support is around 1.4000/20. We see the 200 H1MA at 1.4012, and the 55 H4MA is supporting the 1.40 big fig by coming in at 1.3996.
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