GBP/USD – Re-test of post Brexit low likely
- Strong US data today only widens the growing divergence between the Fed and the BOE, thus the GBP/USD pair is more likely to breach 1.40 handle and re-test post Brexit low of 1.2789.
- On charts, we have had a bearish symmetrical triangle breakout and a daily closing today below 1.3056 (July 16 low) would add credence to the bearish fundamental story.
- On the higher side, only a day end closing above 1.3363 would indicate bearish invalidation.
