Its amazing how quickly the vultures circle. The GBP is back on the menu vs the USD and EUR here.
Participants need a target and a trend to ride. With so many loosening UK announcements from the BOE as well its government in recent weeks and with its money supply expanding quickly its clear the UK is in focus as a potential major currency trading target, short! The problem here for the GBP is that its monetary expansion is a unilateral expansion and this makes it an easy target for value debasement.
Price technically speaking, the attack is gathering weight. A double top areas to have been established vs the US$ and the Euro has distributed at a high price level within its cyclical bear trend vs the gbp. A breakout of this bear trend is within line of sight for the euro.
JP picking up the issue in this week’s report.