GBP/USD ended “Black Friday” 400 pips off its lows, which is impressive given the severity of the country’s decision to abandon the European Union. In the days after Britain was forced out of the ERM, sterling fell another 5% and in the 2 months that followed, it was down 15%. So while we’ve seen an intraday recovery in GBP, we still expect Friday’s low to be revisited and broken. At minimum we expect GBP/USD to drop to 1.32 over next month, but the move could occur as quickly as the coming week. With no major U.K. economic reports scheduled for release, Brexit will continue to be the main story for the markets. When the U.K. decides to invoke Article 50, there could be a relief rally, but don’t be mistaken, that move should be sold into because the divorce from the EU will be messy.