Henderson, Colombia Threadneedle and Canada Life have joined the ranks of Standard Life, Aviva and M&G in suspending withdrawals. The funds under management have reached half of the property investment sector in the UK. The reaction to Brexit may be exaggerated, but that’s what happens when uncertainty is high.
GBP/USD crashed below 1.30 in the Asian session and reached a low of 1.2791. Since then, the pair has recovered and even briefly topped 1.30 only to slide back down. While the reaction to the bad news was a bit too much, the general direction remains down.
Is there a sell opportunity here?
Here is the chart. Cable is currently trading around 1.2940. In the second slide, it has hit a low of 1.2860, a line which could provide temporary support. The swing low of 1.2791 is the new 31 year low. On the topside, 1.30 is the clear line of resistance, followed by 1.3110 which was the previous trough.
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