The previous low at .8330 has now been breached and further losses look to be in store. For many years this pair traded in a .65/.72 range (until the GBP crashed during the GFC) and I for one think a retest of this band over the next 12 months looks quite likely. Europe’s woes are not going away and the UK is trying to get it’s fiscal house in order.
The first decent support level comes in at .8140/60 but a move sub-.80 looks to be on the cards over the next few months. Resistance should be very solid now at .8500.
