GBP/USD Forecast: nearing post-Brexit close
|The British Pound continues outperforming its major rivals, soaring through 1.3500 against the greenback and nearing 1.3600, up for the day almost 200 pips. Comments from BOE's MPC Vlieghe, a well-known dove, on the need of rising rates "soon," where behind the initial spike, later fueled by the technical breakout of the 1.3500 level. The pair is at its highest since June 2016 when it plunged on the Brexit referendum outcome.
In the meantime, the London police declared that the explosion that took place earlier today at Parson Green station was a terrorist attack. UK’s police added that a man with a knife is on the run and that a second bomb was deactivated by the cops.
The pair topped so far at 1.3588, before pulling back modestly, but anyway sharply up for the day. Intraday technical readings are heading north in extreme overbought territory, still heading north, but losing meaning after the pair run almost straight 400 pips in the last 24 hours. On June 24th 2016, and following the Brexit referendum and a 1,300 pips slide, the pair closed the day at 1.3632 a probable bullish target on a break above the mentioned daily high. Downward corrective movements are likely, but speculative interest may choose to buy on dips. Supports from here came at 1.3530 and 1.3490, ahead of the 1.3440/60 price zone.
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