The selling hasn’t stopped for hours
There has been a relentless drive to sell the pound since New York traders began to arrive. There was a solid bounce to 1.2650 from 1.2550 in early European trade but the selling has been relentless since.
The 1.2500 level held in a big reversal on June 3 so it’s not just a psychological marker. Plus there’s only 4 hours of FX trading left for the week.
But we’re just 2 pips away at 1.2502 and a break could spark some stops. In the bigger picture there isn’t much to halt a fall to 1.2300 if the figure gives way.