It was a brutal week for the British Pound until a Friday pullback erased the bulk of Thursday losses in GBP/USD. GBP/JPY and EUR/GBP may have cleaner technical context at the moment.
The US Dollar is putting in a massive move today after another elevated CPI release. DXY is currently showing a bullish engulf and markets are starting to look at a possible 100 bp move at next week's FOMC.
GBP/USD set a fresh 37-year low this week as GBP/JPY put in a bullish breakout from a recent consolidation pattern. EUR/GBP tests a key point of resistance.
The British Pound fell for a second week against the US Dollar, setting a fresh multi-year low. A rebound may occur, but the chance for a trend reversal looks slim. Where is GBP/USD headed?