With further political problems facing PM Theresa May, the current narrowing range on GBPUSD dictates that a breakout either way has to occur pretty soon. Suggestions of a potential coup against her do not help the overall Brexit picture.
The range established since Dec/Jan has remained solid but recovery from the 21st's sell-off doesn't offer much overall help other than to suggest that 1.32220 now seems to act as a resistance rather than a former support established around the 14th March. It's also worth noting that on the 17th and 19th GBP failed to attain the upper reaches of the range.
I would expect at least a brief morning sell-off but the crucial point will be to see if GBP can breach that 1.32220.
Retail signals show a square 50/50 split between bears and bulls, so there's little to work from there either!
If the 1.315 mark is crossed within a short space of time this morning I'd suggest caution with your stops no matter how you decided to play it; volatility is too high at this point to make foolish choices. At this stage, a single piece of news from Downing Street could cause a serious short-term move against you.
The range established since Dec/Jan has remained solid but recovery from the 21st's sell-off doesn't offer much overall help other than to suggest that 1.32220 now seems to act as a resistance rather than a former support established around the 14th March. It's also worth noting that on the 17th and 19th GBP failed to attain the upper reaches of the range.
I would expect at least a brief morning sell-off but the crucial point will be to see if GBP can breach that 1.32220.
Retail signals show a square 50/50 split between bears and bulls, so there's little to work from there either!
If the 1.315 mark is crossed within a short space of time this morning I'd suggest caution with your stops no matter how you decided to play it; volatility is too high at this point to make foolish choices. At this stage, a single piece of news from Downing Street could cause a serious short-term move against you.