Cable under fresh pressure
The pound tried to stage a rally after hitting 1.2760 in a wave of selling into the London fix but those lows have given way in a fresh round of selling down to 1.2727.
There is no catalyst for the dump lower today. Consumer confidence numbers much earlier today were a tad better than expected.
It's all about the virus and flows surrounding it. It appears as though the trade right now is to close out everything and get into cash or bonds. This could represent leveraged longs getting out of the way, particularly in EUR/GBP/
Ultimately, I think the pound is a decent spot to ride out the virus but all financial markets are reeling at the moment and trying to get away from the risks.
Technically the pair looks poor on this breakdown. There isn't much support until 1.2200 and there isn't any love for GBP anywhere.
