The pound’s decline is not a crisis | 08 August 2022

08 August 2022, GBP/USD

GBPUSD trading plan:

Bank of England Governor Andrew Bailey said the pound’s decline is “not a crisis” for now and that policy makers are watching it along with many other measures to assess the economic outlook. While the pound has moved sharply lower against the dollar, it’s held up better on a trade-weighted basket of currencies tracked by the BOE. It’s also rebounded in the past two weeks. BOE's measure of sterling has held up better than pound-dollar rate. Bailey’s remarks came after the BoE hiked rates by a half-point and forecast a surge in inflation past 13% later this year and a recession lasting well into 2023. The bleak outlook, the governor said, is driven mainly by increasing natural gas prices.

Investment idea: range 1.2040 -1.2130.

David Johnson
Analyst of «FreshForex» company
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