The 1.3220/00 break has been decisive for GBPUSD
BOE hike expectations may remain elevated but the quid certainly isn’t. We’ve just touched 1.3134 after breaking the 1.3220/00 support put in post-BOE.
As we slide, the 1.3100 barriers are going to come into play once again and there’s sizeable stops lurking if that breaks. Bids are seen at 1.3120 & 1.3110 and into the big fig. If we do break there, we could be seeing another quick trip taking us to the low 1.30’s and the next decent support at 1.3020/30.
There’s further barriers at 1.30 and they’re even bigger than the 1.31’s.
We might have a case of coming too far in this move so I would expect to see 1.3100/20 holding up if we see a test today. There’s a low risk trade here so I’m going to dangle a long carrot in at 1.3110 with a stop under 1.3080.