Sterling - Sterling falls to record lows, weighed down by concerns over fiscal outlook

Sterling slumps to record lows, weighed down by concerns over fiscal outlook

Sterling against the US dollar continued to be under pressure, on the one hand, subject to the strength of the US dollar, while the UK's fiscal outlook has also attracted attention. British government bond yields rose sharply on Friday, their biggest one-day rise in more than 30 years, sterling tumbled against the dollar and stocks hit their lowest in six months. GBP/USD has remained weak since it fell below the July low of 1.1757 at the end of last month. Even though there was a rebound on September 13, the high of 1.1738 was just below this area. It can be seen that this is a technical counter-resistance. RSI and Stochastic are still lower and GBP/USD is expected to remain under selling pressure. In addition, the low of 1.1450 in 2016 and the low of 1.1404 in 2020 have just formed a set of double top patterns. Therefore, the fact that it is still below this area also indicates that the pound is in medium and long-term weakness; extending the test target It is expected to be 1.05 and 1.03 levels, and the next level will point to the 1.00 points. If calculated by the double top range of about 2840 points, the technical extension medium-term target can reach the 0.8560 level. Midline support points to the 1985 low at 1.0520. As for the resistance level, it is expected to be the 1.0950 and 1.10 points, and the largest resistance will look at the level of 1.1280.

Estimated volatility:
Resistance 1.0950 - 1.1000 – 1.1280
Support 1.0500 – 1.0300 – 1.0000 – 0.8560*













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