No important events are expected today.

Interesting events are starting to happen on the British government debt market – the government bond index has fallen to a 2-month low and is one step away from a yearly low, after which British pension funds, insurance companies and small regional banks may start to have problems, as it was seen last autumn. The market had already fallen to current levels in August, but then we saw a brisk rebound and no collapse in the UK financial sector.

Will we now see a breakdown of the low and a further fall in bond prices, which will provoke problems in the financial sector or will there be a strong correction again? It is difficult to give an unambiguous answer now, so we just need to follow the developments closely. If the debt market falls to new lows, the pound will quickly fall to the psychological mark of 1.20. In my opinion, the chances of such an outcome are quite high.

Recommendations: Sell 1.2120/1.2160 and TP 1.2000.