The downward revision to Q3 yy GDP, a worsening current account and weaker mortgage approvals/lending have all combined to see GBPUSD break down through decent support at 1.5540-50 to post 1.5522 so far
We know liquidity is thin so we can’t be sure the level has fully broken just yet but we can expect rallies to be sold as has been the case for some time now
Large option expiry today at 1.5600 has already been highlighted and with resistance now above that at 1.5640-50, 1.5680, 1.5700-10, 1.5750 and a key top in place at 1.5770-80.
Currently 1.5533
Next real support comes in around 1.5480, and with 1.5500 psychological levels the next target below 1.5700 for many, who’s to say we won’t find a bit of respite from here. It just doesn’t feel like it though and I still can’t see it lighting up many bullish faces for some time yet.
