Hard Brexit

Cable continues to slide. Some thoughts:

  • With rate hikes all but priced into GBP, the growing possibility of a hard-Brexit is a huge factor in the weakness that we're seeing in cable and the like, heading into the decision.
  • A hard Brexit is a huge downside risk for GBP and if the hike is all but priced in, it could well be viewed as overpriced.
  • This could see the GBP downside open up, hike and all.

More on the GBP/USD levels:

  • Price has come straight back down to the first key intraday level highlighted.
  • It's stalled for the past few hours, but how heavy does it feel.