GBP: no rest for the wicked. Overview for 02.09.2022
GBPUSD keeps updating its lows; there are very few options on how to stop the plunge.
After updating another low against the USD, the Pound Sterling is trying to reach stability. The current quote for the instrument is 1.1562.
The political factor should be cleared up as early as next Monday. The Conservative Party will announce its new leader, who will go on to become the country’s Prime Minister. Liz Truss is a favourite so far. Politicians like her. Unlike investors.
Truss has a checkered reputation despite many years of political experience and the current status of Secretary of State for Foreign, Commonwealth and Development Affairs. However, she has opponents, and if the party chooses Rishi Sunak, a young conservator and Chancellor of the Exchequer, to be the next leader, the Pound will get much support.
All these things considered, fundamental prospects for the GBP remain negative. Neither Truss nor Sunak will be able to reverse the British currency upwards, because the crisis is only escalating.
Nevertheless, there might be some local improvement for sure.
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboMarkets bears no responsibility for trading results based on trading opinions described in these analytical reviews.
The material presented and the information contained herein is intended for our customers, and is for information purposes only and in no way should be considered as the provision of investment advice for the purposes of Investment Firms Law L. 87(I)/2017 of the Republic of Cyprus or any other form of personal advice or recommendation, which relates to certain types of transactions with certain types of financial instruments.