The Sterling recovered some ground as the dollar and the yen pared gains, with the GBP/USD pair advancing  above the 1.3300 mark after London's opening. Risk aversion has eased, but remains in the background and can return to the markets anytime now. Later today, the UK PM David Cameron will meet with the rest of the EU leaders in Brussels, the first time after Britain's vote, which could involve some risks, given that it seems the rest of Europe is eager to see them leaving, now that the decision has been made, and would like London to trigger the art. 50, whilst Cameron is in no rush of doing so.



The GBP/USD pair 4 hours chart shows that the Momentum indicator has corrected most of its oversold reading, but has lost upward strength below its 100 level, and turned flat, whilst the RSI indicator consolidates in oversold territory. In the same chart, the 20 SMA heads strongly lower above the current level, still unable to catch up with price action. Overall, the risk remains towards the downside, albeit the pair may corrected higher on an advance above 1.3350, the immediate resistance, and extend then up to 1.3420. Above this last, Monday's high of  1.3483 is the next possible bullish target.

Below 1.3260, however, the risk turns towards the downside, with the pair then poised to extend its decline down to 1.3150.