GBPUSD Monthly Long Term Chart:
After Brexit vote GBPUSD prices broke a trendline joining the 3 MAJOR BOTTOMS of last 25 years (1993 , 2001 & 2008) … this is a SIGNIFICANT move .
GBP looks oversold with RSI below 30 … this same level of RSI in 2008 matched with a GBP quote around 1,60 . This did not prevent Cable to fall further to 1,37 a few months after.
Mid and longterm trend are down and short term bounces are likely in the 1,28 – 1,30 area . Only a bounce above the red long term trendline can improve the mood , ie above 1,32 -1,33 area but this does not look to be in the cards at the moment . So watch 1,32-1,33 to be neutral to bullish again.
Flash crash on GBP this morning : GBPUSD hits 1,19 and is now back jut below 1,25 :