The GBPUSD has continued to bleed all the way through the summer trading months. The broad based dollar strength coupled with the BREXIT theme has put pressure on the British Pound. Now, as long as we trade below the big psychological number we should expect the bears to continue to dominate this market. August’s swing low 1.2662 is the key level the bulls need to defend if they want to have a chance to keep the GBP/USD exchange higher. The stochastic indicator is in overbought territory and it’s signaling that the current bounce may take a breath. On the upside, the most significant levels are 1.3000 followed by resistance level 1.3300. However, we need a strong daily close above1.3000 in order to be able to see 1.3300. The BREXIT theme will be on the agenda of the EU leaders when they meet in September 20. The BOE hiked interest rates, in August, for the second time since the financial crisis, so there is little evidence that they will surprise the market with another rate hike at their September meeting. The market consensus is for the monetary policy to remain unchanged. Previous GBPUSD Monthly and Weekly Forex Forecast