The British pound has been one of the more resilient currencies in the current dollar storm, with cable keeping away from 1.50, and with the pound setting new records against the euro as well as other currencies on a daily basis.
But now, the most recent wave combined with weak UK manufacturing data, GBP/USD is getting closer to the very round 1.50 level.
The low so far is 1.5008, just 3 pips away. On the way down, the pair lost the 1.5027 level that the pair held on to to earlier.
Can we see a dip under 1.50? The most important line on the downside is 1.48, which was the lowest level seen under current governor Mark Carney.
Carney was actually upbeat about the economy and not too worried about inflation. He saw through the fall in oil prices and in the recent meeting minutes the members even saw inflation “rising sharply” once the effect of the black gold diminishes.
Yet, the moves depend on expectations regarding the US: the NFP cemented a removal of forward guidance, paving the road for a rate hike in June. Markets continue digesting the news and the dollar is moving higher across the board.
Opinion: GBP/USD: Wedge Breakout; – Goldman Sachs
Here is the chart:
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