This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
GBP/USD drifting lower after recent rebound
GBP/USD managed to rebound yesterday after a series of positive events raised hopes that the Brexit proposal is gaining credibility. For the near term we have the EU summit on the weekend to concern ourselves with. We are seeing the pair drift lower and there is no guarantee that we are finished with the retracement.
However, it looks likely that this is a retracement of the $1.3072-$1.2724 sell-off. As such, we look likely to see further downside, yet a break below $1.2764 would be required to signal that the next leg lower is upon us. Until then, there is a chance that this current drift lower is going to be greeted by another rebound. Such a move could be sparked by EU approval on Sunday.