Pound gets its marching orders after services slump

A first real confirmation of Brexit fallout

The quid has taking a dive as big parts of the economy fall into contraction.

GBPUSD has fallen down to yesterday's lows around 1.3160 and may very well put those to the test once again.

GBPUSD H1 chart

It looks like it's going to be very hard for cable to pick itself up from here and we've already seen resistance coming in around 1.3180/85. If we can hold the lows then there might be an attempt at a push back up. A lot of that may also depend on EURGBP holding a key level itself at 0.8380/0.8400

EURGBP H1 chart

I'm not really inclined to fade this move either way but if I was, then EURGBP is where I'd look to do it.