Since the start of the prior week, the Pound has been oscillating in an rising-wedge formation that may be indicative of an ensuing sell-off. Currently it appears as though there may have been a slight break of support as identified by the chart below.
Furthermore, a fundamental bias favors Dollar strength. Once the dust settles, currency trajectories are expected to follow relative growth paths. U.S. economic expansion is favored to recover before that of the UK’s as the Federal Reserve and the Treasury Department have been the first to address the financial crisis and to act upon it.
