GBPUSD is making a downward correction. ING economists expect the pair go back down to 1.10 in the coming months.
1.1670/1.1750 could be the short-term corrective bottom for GBPUSD
“UK Chancellor Jeremy Hunt has been ratcheting up the rhetoric that Thursday’s autumn declaration is going to hurt: it includes tax hikes for all and a big cut in public spending. Neither option is politically acceptable, but if not met, another round of Gilt and British pound selling would be triggered.”
“1.1670/1.1750 could be the short-term corrective bottom for GBPUSD before a possible push back to 1.20 in a new short-squeeze. But in the bigger picture, even these current GBPUSD levels near 1.18 should be attractive to those with bad debts in GBP”.
“We suspect GBPUSD may trade back to 1.10 in the coming months.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
