GBP/USD has been hit hard since morning in line with our forecasts over the last few days where we have mentioned that this pair is unlikely to make any progress beyond its range highs over the next few weeks despite all the volatility that it has been going through. We have also been specifying that any bounce in this pair should be viewed as an opportunity to sell this pair and this is being proved again and again.
GBP/USD Under Pressure
The pair simply cannot get itself off the ground to make a run to its highs and as long as the fears and the uncertainty around the Brexit process continues to exist, there is going to be one event or the other that is going to put the pound under pressure and push back the GBP/USD towards the lows of its range.
This weekend, the event that has pushed back the pair is the rumor doing the rounds that Scotland might go for a second referendum to gain independence from the UK. Of course, this would not be liked by the UK government and it could also affect the UK economy severely and could impact the UK in various other ways and this is why we have been seeing the GBPUSD pair getting pounded lower since this morning. This impact could last for the rest of the day and hence, we could see the pair on the backfoot for today.
Looking ahead to today, we do not have any major news from the UK and we have the core durable orders data from the US. But the chief concern would be the referendum rumors in Scotland and as long as it lasts, the GBP/USD pair is likely to be under some severe pressure and traders need to be careful about this event and also the volatility that is due to arise due to the month end flows as well.