UK Finance Minister Kwerteng on the BBC says:
- Its economic strategy is not a bet
- Failed to acknowledge that the UK was in a recession and that one was not inevitable
the GBPUSD and rates might say otherwise.
UK 10-year yields hit a high of 3.842%, the highest level since May 2010.
Traders pushed the pound lower.
Looking at the 5 minute chart below of GBPUSD, the pair hit a fresh session low at 1.08609 and the lowest level since 1985. The downside move was in 3 trend leg moves with the last move being the longest and steepest drop. It took the price from 1.10957 to 1.08609 or -235 pips.
The 38.2% to 50% correction zone lies between 1.0950 and 1.09783. Climbing above the level would give bearish buyers some comfort and a small win at least intraday. The falling 100 hourly moving average at 1.1023 would be another target to hit if the bulls were to start gaining in the near term.
This article was written by Greg Michalowski at forexlive.com.