The British Pound fell sharply last week to reach a new 18-month low against the US Dollar. European currencies excepting the Euro are generally weak, but the Pound is showing standout weakness after the Bank of England forecast British inflation would exceed 10% by the end of 2022.
The fall in GBP/USD on Thursday was unusually strong and produced a small but significant follow-through in bearish momentum over the next day.
With a still-strong US Dollar, and Pound weakness driven by fundamental forecasts, the price here looks likely to fall further over the coming days. However, bears need to beware the support level at $1.2314.
I will be prepared to enter a new short trade if we get a daily (New York) close below $1.2314.
The fall in GBP/USD on Thursday was unusually strong and produced a small but significant follow-through in bearish momentum over the next day.
With a still-strong US Dollar, and Pound weakness driven by fundamental forecasts, the price here looks likely to fall further over the coming days. However, bears need to beware the support level at $1.2314.
I will be prepared to enter a new short trade if we get a daily (New York) close below $1.2314.