Research Team at Westpac, suggests that the GBP’s fall is a necessary part of the overall mix of monetary conditions easing.
“Concerns over inflationary impacts on household confidence together with broader uncertainty over business investment intensions as “hard” or “soft” Brexit negotiations will weigh on economic prospects and so on GBP.
Technical: Daily momentum may appear supportive, but the broader bias is for GBP to retest recent lows. Though 1.2320-25 has capped initial rebounds, risk of a squeeze to 1.2450-60 persists. Even so, the 1.2320-1.2460 area should allow for rebuilding GBP shorts for retests of 1.1840 (flash crash low).”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.