The GBP/USD continues to lose ground in early trading today and the depths of the forex pair are bringing into view long term perspectives.
The GBP/USD is traversing near the 1.17500 level as of this writing. Yesterday’s high of nearly 1.18310 began to wave early and support levels have continued to prove vulnerable. On the 17th and 18th of August the GBP/USD was still above the 1.20000 level and some speculators may have thought support lines could be held at those ratios. However, selling of the GBP/USD continues to grow and its pace downwards yesterday certainly quickened.
Long term charts and historical perspective will be debated as the value of the GBP/USD currency pair is challenged. During coronavirus and the days of the Brexit chaos the GBP/USD did test low depths, but both those events were overcome. The forex pair was able to climb and reached what many financial houses – particularly in the U.K – believe was a more ‘reasonable’ equilibrium between 1.30000 and 1.40000 with outliers being seen on occasion. The price of the GBP/USD is now lower than it was during the worst of Brexit fears, when the 1.19000 ratio came into sight.