GBPUSD - retrace back to 1.30 before continuing down
GBPUSD - retrace back to 1.30 before continuing downward after UK employment numbers.
Long term breakdown still intact till 1.25 on fundamentals and UK economy.
Long term breakdown still intact till 1.25 on fundamentals and UK economy.
Note
Rationale for long term GBP weakness
USD to remain strong long term - Tariffs on imports in the US will increase inflation - Fed may have to slow down interest rate cuts.
UK economy showing no signs of recovery - at best growth is forecast at 1.5% which is still 'optimistic'. Rates may drop quicker than the US over the next 6-12 months further heaping pressure on the Pound - looks like will revert to mean and approx fair value of 1.25 before the next long term move.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.