Despite this month’s FOMC and BOE meetings now being behind us, GBP/USD remains of interest this week as the UK’s new tax cut and spending programs have created a surge in volatility.
The announcement of the mini-budget on Friday saw cable drop over 400 pips, with sell-off extending to start this week, taking the pair to a new all-time low. While GBP/USD did pare of the earlier losses, support is hard to find at this point, and the BOE is now under increasing pressure to respond.
Will the central bank try to hold out making any decisions until their next meeting in November, or will the British Pound’s free-fall spark an emergency intervention?
Check out this article for a deeper insight and key technical levels to keep an eye on: