GBP/USD initiated a massive movement yesterday from appx. 1.2776, following the already massive one previous in the session.
I believe its now going to be looking for its “priced-in” rate now that the liquidity gap caused by yesterday's drive has been filled.
There's a larger area of volume traded in the 2760's that may pull on prices for the time being, but ultimately we should be looking at a larger range here without the help of any fat fingers to the downside.
In the futures world, 6B market orders have been an overwhelming sale for the last 24 hours, with moves up only being driven by larger, limit order traders. They appear to be accumulating once again around the current rate
I still don't like the nature of this spike from a fundamental perspective. Drives created by political events, without concrete action in terms of policy, tend to fade. But you don't erase a move like this (especially one which “stuck” in an overnight session) in an instant. The acceptance level to the downside approximately coincides with a 2.0 measured move of this last Asian/London session range. The 1.618 extension has been achieved at this low.