07.10.2016 - Pound updated the minimum of 31 years
During the Asian session amid low trading volumes, the British currency price suddenly dropped and approached the level of 1.2000. Despite the overall negative sentiment against the pound in connection with the exit of the country from the EU and the recent comments by French President Francois Holland on the need for tough negotiations with the United Kingdom on the country's exit from the EU, we see no fundamental reasons for such a drastic move. According to our estimates, such a move was caused by a technical error of one of the major traders, which activated the stop orders or intentional acts to manipulate the price. Our medium-term outlook is negative and we lower target levels to 1,1500-1,1600, but do not rule out short-term rebound of price.