With the sudden plunge taken by USD after the Chinese answer we would hope that we were going to see more of the growth when it comes to other currencies which are traded against the greenback, but that proved to be a false statement for pound – even despite the plunge of the dollar, British currency still managed to fall and recover in the span of the last 48 hours. And that is given that the full-on recovery still seems to stall. Although traders expect pound to see more of the climb by the end of the week. Is that possible?

Well, most of traders’ eyes are on trade war right now. We are waiting for US answer to Chinese imposing $75 billion worth of tariffs and we predict that it is not going to be pretty. The war is about to escalate and traders are more probable to flee towards safe havens as opposed to other currencies. And pound is as well out of luck in this situation. The pound fell because of the caution talk rising. It comes as a result of no-deal Brexit being more and more likely. And even though it is not anticipated that in case of a no-deal Brexit pound is going to fall automatically, it is still more likely than it being stable after the date of Brexit passes by us.

Of course with thoughts like that it is doubtful that traders are going to stay with the pound for a long time. We are likely to see more and more of the selloff in the nearest time.

In order to understand where the selloff might hit, use our trading signals.