The coronavirus crisis drove GBP/USD to a multi-year low at 1.1413, and that's deep enough to force those trading the pound to reassess the 1.20-1.40 post-Brexit range.
Major technical resistance around 1.3000 will probably shape the top of a new long-term range.
The weekly Ichimoku cloud 1.2738-1.2972, 100-week moving average at 1.2746 and 200-WMA at 1.2907 weigh on GBP/USD.
The monthly Ichimoku cloud, which has effectively capped GBP/USD for a decade, begins at 1.3479.
It stretches to 1.4342.
Thick clouds do not break easily.
They are not insurmountable, but it makes sense to hedge for a lower pound ahead of those significant resistance points.
The UK is among the worst affected by the coronavirus crisis and a hard Brexit seems likely, with interest rate futures tilted into negative territory in anticipation of the stimulus that's will be needed to offset these factors.
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