Ever since the Bank of England governor put doubts in a rate rise three months ago, the Pound Sterling has been haemorrhaging strength.
Against the US Dollar, the rate is flirting with a break beneath the key psychological level at 1.3000. If you look at GBPUSD‘s daily bar chart, you will see that each pivot low is lower than the one before. This suggests that traders are not convinced that the central bank will hike in August. And they are continuing to sell GBP on rebounds.
Of course, the US Dollar is also strong these days. This is due to geopolitical tensions and trade war fears. Investors buy the dollar in times like these. Overall, we would not be surprised if GBPUSD slips through below 1.3000 in the coming weeks.
Jackson has over 10 years experience as a financial analyst. Previously a director of Stockcube Research as head of Investors Intelligence providing market timing advice and research to some of the world largest institutions and hedge funds.
Expertise: Global macroeconomic investment strategy, statistical backtesting, asset allocation, and cross-asset research.
Jackson has a PhD in Finance from Durham University.