GBP/USD knocking on the door of the next leg lower

The outlook for cable pretty much mirrors a lot of what we see in EUR/USD and with the dollar running hot again in the past week, it is hard to fight the momentum when the pound itself has so little going for it at the moment. When looking at the pair, I maintain the view from last week here:

„Considering that both central banks (Fed and BOE) already gave a formal message that we are in the second-half of the tightening cycle, the trade for cable is very much a case of 'who folds first’? The Fed or the BOE? In this instance, it looks very much like the latter.

Michael Cooper

Learn More →