The GBP/USD pair fell during the day on Tuesday, breaking below the 1.30 level. Because of this, I believe that we continue to go lower, perhaps reaching towards the 1.2850 level below which I see as the absolute “floor” in this market at the moment. However, I believe that we will not only break down to try to get to that region, but I also believe that we will break down below it and reach towards the 1.25 level which is my longer-term target. After all, the British pound continues to get sold off in reaction to the exit vote, and of course people will often buy the US dollar in order to find some type of safety when things are uncertain.
