GBP/USD broke down below 1.30 but did not go too far after the initial shock. More to come or is it the end of the crash? Don’t Fade GBP Decline Yet; BoE To Trigger Another Sell-Off Next Week – BNPP GBPUSD hit the 1.30 tactical target we established in the immediate aftermath of the referendum, trading to a low of 1.2798 as risky assets underperformed in Asia, and we continue to see risks as lying to the downside for the pound. 1.2753, which represents a June 85 weekly low, is viewed as an important support on the downside. Here is their view, courtesy of eFXnews: The next catalyst for a GBP sell-off could come from the Bank of England next week. In our view the market is still likely under-pricing BoE easing, with our economists forecasting a 25bp rate cut next week followed by a 25bp cut at the August meeting and GBP 100bn worth of QE (including corporate bonds) to be announced by the November meeting. Lower rates and reduced FDI should leave the GBP vulnerable for some time to come. GBP Liquidation & Risk Of Undershooting – Morgan Stanley Some of the UK’s most prominent open property funds stopping withdrawals to try to avoid fire-sale type of liquidations have put market attention on the 45% foreign participation within those funds. It underlined the significance of foreign selling of GBP-denominated assets. With foreign liquidation there is now a growing risk of the UK’s financial account dipping into the red which, coupled with the UK’s substantial 7% of GDP current account deficit, could lead to an emerging market-like FX reaction. GBP is at risk of undershooting. However, as long as the GBP decline does not trigger additional UK asset price weakness and volatility elsewhere, local authorities should be fine with a lower GBP. Front-loaded GBP weakness could even be beneficial for the UK, allowing it to generate inflation expectations which, in conjunction with lower nominal bond yields, could channel real yields to low enough levels to support investment picking up. The BoE’s financial stability report clarified that any weakening of the UK’s financial conditions would see the BoE easing. This approach is justified, given high private sector leverage ratios. For lots more FX trades from major banks, sign up to eFXplus By signing up to eFXplus via the link above, you are directly supporting Forex Crunch. Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Opinions share Read Next NFP Preview: Need for a rebound [Video] Yohay Elam 6 years GBP/USD broke down below 1.30 but did not go too far after the initial shock. More to come or is it the end of the crash? Don't Fade GBP Decline Yet; BoE To Trigger Another Sell-Off Next Week - BNPP GBPUSD hit the 1.30 tactical target we established in the immediate aftermath of the referendum, trading to a low of 1.2798 as risky assets underperformed in Asia, and we continue to see risks as lying to the downside for the pound. 1.2753, which represents a June 85 weekly low, is viewed as an important support on the downside. Here is… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.