• GBP selling gathers pace vs EUR and USD

• Sharp rise in gilt yields also adding to downside risks to GBP

• Benchmark 10yr hits 4.6%, up from daily low of 4.37%

• Cable clears 200DMA at 1.2812, daily close below will embolden shorts

• As observed by blowouts in AUD & NZD, cannot rule out GBP hitting 1.25

• This could happen in short order if risk aversion becomes dash for cash

• Signs of dash for cash would be sizeable selling in gold, USTs and stocks

• Would suggest that liquidity is scarce, leading to dollar surging
GBPUSD daily chart

(Justin McQueen is a Reuters market analyst. The views expressed are his own.)