British Pound Latest: GBP/USD Rallies Back to Pre-Meltdown Levels

[MongiIG]

GBP/USD - PRICES, CHARTS, AND ANALYSIS

• Sterling rallying hard as gilt market turmoil subsides.
• There remain plenty of Sterling headwinds.
• A big shift in GBP positioning as net-longs are slashed and net-shorts jump.

Sterling is pushing higher against the US dollar, and has made back all of its recent ‘mini-budget’ sell-off, as the greenback fades lower. The recent turn lower in US Treasury yields, sparked by fears that the US central bank is moving interest rates too high, too fast, has helped to stall the multi-month sell-off in cable. The pair are now back at the March 2020 swing-low around 1.1410, a level that stalled price action prior to the collapse

 

Oct 4, 2022 
Nick Cawley, Strategist | DailyFX