Another gloomy session for the pound on Wednesday as traders and dealers continue to sell the unloved currency. The GBPUSD pair broke through the $1.16 handle overnight getting ever closer to the March 2020 pandemic low of $1.1409!
Sentiment toward the UK has been souring since the early part of this year with the cost-of-living crisis rumbling on against a backdrop of a deeply uncertain political situation. Boris Johnson has been pushed out for what appears to be 2 candidates not up to scratch in their ability to manage the approaching storm/hurricane.
Whilst the pound could easily continue its journey lower, we’re likely to observe some dip buyers at these levels who feel the time is right to purchase some cheap sterling. $1.1409 is the big level for cable, while €1.1460-€1.15 is significant for GBPEUR.
Written by Viv Savani. 6:53am, September 1st 2022
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