GBP/USD hits a low of 1.3303 for the day
The pair has broken through the 100-hour MA. But the key here right now is the November upward trendline. That for me, is the pivotal support level for the pair.
A further break will likely drive the pair towards the 200-hour MA next. And if we look at it from a break in the trendline perspective, that is likely not going to be enough to hold the pair up.
The next big support level if we reach there is the November 22 low of 1.3214.
There was the financial stability report, bank stress test results, and Carney's presser earlier in the day - you can take your pick as to what drove the pair down but the takeaway for me from all of that is that there is still a massive negative perception related to Brexit.
And that sentiment is not likely going away any time soon. And that will continue to weigh in on the GBP as we move along. There wasn't anything substantial related to monetary policy in those reports, but just constant talks of how Brexit could be painful to the economy is enough to keep a lid on the pair it seems.
It felt like the stress test wasn't on the banks, but more like Carney was stressing out the politicians to transition to a Brexit deal as quickly as possible; or in his own words, "the sooner the better".
Update: It just dipped below 1.3300 for a brief second.