GBP/USD: early Asian Brexit related offers, but bulls holding the 1.31 fortress
GBP/USD is currently on the offer on the back of the FT story in respect to an MPC member's suggestion that the BoE will be moving towards a policy that could effectively flood the markets with sterling.
GBP/USD has otherwise held up well, despite the Brexit vote and is now in consolidation in the low 1.30's of the previous sell-off from 1.5016 when the pound crashed to 1.2794.
BoE MPC member drops opposition to stimulus, GBP sold-off in early Asia
GBP/USD: MPC ready to act and has all the tools - FXStreet
GBP/USD levels
"From a technical point of view, Valeria Bednarik, chief analyst at FXStreet explained that the pair still in a consolidative phase ahead of a clearer economic and political picture. "In the 4 hours chart, the price holds below a horizontal 20 SMA, currently around 1.3165, while the technical indicators hold within negative territory, with no directional strength."
Analysts at Commerzbank suggested that the intraday Elliott wave count suggests that the market is not ready to go sub 1.30 yet, "Failure here is needed to trigger a slide to 1.2885/1.2750. Support at 1.2750/78.6% retracement of the move from 1985 to 2007 is regarded as the last defence for the 1.0463 1985 low."
Extra reading on Brexit related issues: