The British pound wasn’t able to stabilize above 1.3660 and fell back below 1.36 amid speculation that the prospect of several Bank of England rate hikes would darken the outlook for growth and consumer sentiment. Consumers are already grappling with soaring energy prices and supply chain disruptions and a BoE tightening within that slowdown is by many strategists seen as a mistake. Some traders brace for the pound to fall toward 1.30 by year-end.
In short, a wave of bets against sterling is starting to build and we are curious to see where the pound is headed for in the next weeks and months.
Currently we see the 1.34-1.3370 area as a support zone in the GBP/USD while a break below 1.3370 could lead to further losses toward 1.32.
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