A steady retreat just turned into a tumble 26 Sept
GBPUSD has broken down through 1.3440 to trigger stops and post 1..3418 lows in in a hurry as EURGBP grinds its way higher after holding 0.8750 earlier.
Month-end BUBA demand will be adding to support in the EURGBP dips as I highlighted earlier. I have also said previously that the buying is not necessarily left to the last day of the month now and given the steady falls we can reasonably expect BUBA to take advantage.
I’m not hearing they are definitely in as yet. Just giving one potential scenario to keep in mind.
Either way it does seem that the recent GBPUSD demand has somewhat lost its attraction for the moment as Brexit unknowns outstrip rate hike unknown again for the moment.
Decent support lines/demand into 1.3400 though will prove a good test for the sellers if we are to continue lower.