Disorderly is the word to describe the decline in GBPUSD on Friday and today (Mon). The trading range for those two days is around 930 pips!

The charts and technical analysis can tell as much in such situations. GBPUSD is now completely in uncharted waters, and who knows where the bottom could be. A lot will depend on what actions UK policymakers take or don’t take (check previous section). The low could be the one set today at 1.0337, or GBPUSD could fall to parity (1.00) or even lower.

To the upside, it’s a little easier to find important technical levels, but even in this case, the volatility is so high that any levels may be of little use for short-term traders. Based on the weekly chart, we can say the 1.10 and 1.15 zones should act as resistance.

To the downside, 1.00 – if reached – should attract some bullish pressures, though, as noted above, it remains highly uncertain how much impact that would have to stop a further decline below parity.