GBP/USD rebound proves short-lived

Earlier this morning we covered the latest UK jobs reports and how the Pound had initially reacted positively to all that news. Well, it did push a little higher after that, edging up to around 1.3425. However, that move has long since blown out and the GBP/USD has fallen back below 1.3275 as we write. We remind the reader of the low seen last night, at 1.3262 and as you can see that is in close proximity again right now. There is a risk that a break below 1.3262, if seen will deliver some more downside.

The prospect of the BOE doing nothing at 11am GMT is also a headwind for the currency, but more so the important UK BY-election. Some people we have spoken to believe that no matter the outcome of that it will be a negative for the Pound. The GBP/USD is right now at 1.3271