GBP Is Still Favouring The Downside
Skerdian Meta • 1 min read
The British pound found some bids after the BOE (Bank of England) increased the votes to hike the interest rates a couple of weeks ago. I said back then that it would be really hard for them to take action, considering the place the UK politics and economy are right now.
They saw inflation jump to 2.9% and they got scared it was going to spiral out of control. But since then, the economic data from the island has turned really sour.
The numbers from the construction sector, manufacturing, and industrial production took a dive last week.
Although, the services data hit GBP bulls the hardest since it makes up 80% of the British economy. Since then, the GBP/USD has started a downtrend.
Now, it looks like there's an ocean between here and 1.30, even though we are not that far from that level. The buyers couldn't even take the price above the 100-SMA on the hourly forex chart this morning.
So, the price turned back down. But while other forex majors have stalled, the GBP/USD is still sliding, which means that the GBP is on the back foot. It's not all lost for the pound, but it will be if the earnings disappoint again on Wednesday.