The pound charts mirror the current UK weather, grey, soggy and miserable.

The Times reported that Theresa May will issue the strongest speech yet on Brexit, and despite it just being a sources story, quite rightly, the pound has taken a big hit. Last week we had a similar episode when May said that Brexit means Brexit, even though that's been her rhetoric from the start.

The market is constantly looking for clarification on what approach the government will take on the single market. If the Times is to be believed, and their sources are very much worth considering, then the UK is potentially heading for a full "out", door slammed shut exit. That's what the market is fearing and that's what it sees as a worst case for the UK.

I very much doubt that will be May's actual approach unless she really is thinking about hitting the reset button. Both Europe and the UK are far too intrinsically linked to separate with a axe blow. The UK can't just sail off to somewhere warmer and open up shop. There will be an approach by the UK government to keep important ties that work for both sides but that's all to come in the negotiations to come.

The important factor to remember that this is all political, and sensible thinking doesn't come into it. The EU can't let the UK leave, and on the face of it, allow us to keep the good parts, or other countries will follow us out the door. They have to balance that up with what damage that approach might do to their other members. The UK has a lot to lose from businesses and investors leaving the UK. What will be important is how both sides try save face with whatever deals they strike.

For now we have to deal with what's in front of us and it's purely that half out/all out situation the market is trading on. We're now preparing for 'all out' remarks that may come from May, and until we hear exactly what she's going to say, you can expect volatility to remain high in the pound.

We had the first dip below 1.20 since the flash crash, and even though we've bounced since, that's shaken the walls of support down here.

GBPUSD monthly chart

1.1943 is a long-term level of support. It's not an overly strong looking one and it's more of an area rather than one number.

GBPUSD monthly chart

The area between 1.1943 and down to 1.1870 is where support was seen over the 1984/85 period and technically, it's the most significant looking area until we hit the 1.05's.

The pound's willingness to get quickly back above 1.20 shows that 1.20 still needs a lot of consideration as support.

GBPUSD 15m chart. Gap watchers will be looking at 1.2180 odd for that close.

Expect more nervy sessions ahead, especially until we hear what May has to say herself and know her full position. Look for any break and hold below 1.20 as a sign that there's more downside to come.