UK finance minister Kwerteng: His economic strategy is not a gamble

The UK finance minister Kwerteng on the BBC is saying:

• His economic strategy is not a gamble
• Did not acknowledge that the UK was in recession and that one was not inevitable

The GBPUSD GBP/USD The GBP/USD is the currency pair encompassing the United Kingdom’s currency, the British pound sterling (symbol £, code GBP), and the dollar of the United States of America (symbol $, code USD). The pair’s rate indicates how many US dollars are needed in order to purchase one British pound. For example, when the GBP/USD is trading at 1.5000, it means 1 pound is equivalent to 1.5 dollars. The GBP/USD is the fourth most traded currency pair on the forex exchange market, giving it ample liquidity a The GBP/USD is the currency pair encompassing the United Kingdom’s currency, the British pound sterling (symbol £, code GBP), and the dollar of the United States of America (symbol $, code USD). The pair’s rate indicates how many US dollars are needed in order to purchase one British pound. For example, when the GBP/USD is trading at 1.5000, it means 1 pound is equivalent to 1.5 dollars. The GBP/USD is the fourth most traded currency pair on the forex exchange market, giving it ample liquidity a Read this Term and rates might say otherwise.

UK 10 year yields rose to a high of 3.842% which was the highest level since May 2010.

The currency traders pounded the pound to the downside.

Looking at the 5 minute chart below of the GBPUSD, the pair reached a new session low at 1.08609 and lowest level since 1985. The move to the downside has been in 3 trend leg moves with the last move being the longest and the sharpest decline. It took the price from 1.10957 to 1.08609 or -235 pips.

The 38.2% – 50% correction zone comes in between 1.0950 and 1.09783. Getting above at level would give dip buyers some comfort and a small victory at least intraday. The falling 100 hour moving average at 1.1023 would be another target to get to and through if the buyers are to start winning in the short-term .