Confidence in the UK economy and the British Pound (GBP) are fast eroding with the economy expected to accelerate its interest rate hiking to a near high 6.0%. Monday’s trip to the 0.5525 (1.8100) region was unpredicted but a reflection on big picture economic issues coming to the surface. The Pound (GBP), New Zealand Dollar (NZD) rebounded into Tuesday to 0.5250 (1.9040) highlighting current volatility present in the market. It may take a while before we see real GBP performance return, so we predict the currency to remain unsupported for the next while especially while debate over fiscal policy is sorted over the coming weeks. No data to publish this week for the cross.
Current Level: 0.5248 (1.9054)
Resistance: 0.5370 (1.9650)
Support: 0.5090 (1.8620)
Last Weeks Range: 0.5159-0.5306 (1.8845-1.9382)