GBP/USD Forecast Pound Dollar September 27, 2022

Posted 26 September, 2022

On Monday, the British currency fell 5% against the dollar to hit 1.0327, a historic low. The GBP/USD pair showed the biggest intraday drop since 2020 when the markets were in a panic due to the COVID-19 pandemic.

The dynamics of the sterling were influenced by Friday's presentation of the economic plan by the new finance minister Quasi Kwarteng. The planned unprecedented tax cut in the UK, through the largest debt issuance since 1972, has fueled fears that such a policy will lead to a sharp increase in inflation and public debt.

 

Technical analysis and GBP/USD forecast Pound Dollar September 27, 2022

 

The GBP/USD currency pair accelerated its fall with the renewal of historical lows after the breakdown of the lower boundary of the downward trading channel, as expected in the Pound/Dollar weekly forecast. The RSI indicator on the four-hour chart has recovered to the neutral zone, and a downward rebound is expected from the descending trend line. Thus, the GBP/USD forecast Pound Dollar September 27, 2022, assumes a short consolidation around 1.08, followed by price fixing below the key mark of 1.05.

 

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26 September, 2022 11:06

← EUR/USD Forecast Euro Dollar September 27, 2022

The European currency falls for the fifth trading session in a row in tandem with the dollar, updating 20-year lows.

EUR/USD Forecast Euro Dollar September 27, 2022

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