Recession fears in the UK have dampened buying of British Pound (GBP) in recent days after an early week surge to 0.5620 (1.7800) its back around 0.5680 (1.7600) levels this morning. JP Morgan have predicted post a recession this would leave the economy 10% lighter than pre covid times. A very significant shift which will impact UK consumers bigtime as the cost of living rises over the following 1-2 years. A lack of tier 1 data early in the week has left the cross subjected to “risk” moves. Key data Friday is UK GDP m/m which will print in the negative – just a question of how bad. Also, the UK fiscal plan which could support the GBP.
Current Level: 0.5652 (1.7692)
Resistance: 0.5750 (1.8200)
Support: 0.5500 (1.7400)
Last Weeks Range: 0.5517-0.5720 (1.7482-1.8123)