GBP/USD Technical Analysis: ’Brexit’ Pricing Pushes Pound Lower

Today is a special day for those who follow implied volatility. Specifically, the GBPUSD 3M ATM implied volatility is now pricing in the date of the British referendum. Implied volatility is the estimated volatility of a market or in this case, the currency pair’s price. In general, implied volatility increases when the market is bearish, and the rise in implied volatility for GBP/USD has reached its highest level since 2011 today and may continue to rise alongside the fears of a ‘Brexit’ coming to fruition. While the price of cable has fallen for the fourth straight day, little is encouraging us to ... READ MORE