Fundamentally, I believe the U.K. will crash out hard from the EU causing GBP/USD to fall to parity. Coupled with weak GDP and rising levels of inflation, the economy is headed towards a recession in the coming year. Analysis was done based off a Fibonacci Retracement level from monthly swings to the downside. A further extension level was plotted, and with confluence of Elliot Wave principals, the 3rd leg of the impulse wave will reach at least 0.93$ levels.
Current interest rates:
U.K: 0.75%.
U.S.A: 2.5%.
= Positive carry-trade.
Current interest rates:
U.K: 0.75%.
U.S.A: 2.5%.
= Positive carry-trade.