The British pound is digging in and finding support near lows marked by the Brexit sell-off in 2016. These former lows could be a logical level to see a mean reversion bounce. When we consider the bullish divergence in momentum and extreme oversold reading, this setup could look even sweeter.



This might be a recipe for a rebound in the pound. As long as it’s above those former 2016 lows, risk could be to the upside.

And if the GBP is catching higher, then the rally in the U.S. dollar might take a breather. That would benefit risk assets across the board and around the world.