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CRASHING DOWN! Pound Plummets as US Jobs Data Rocks the Market!
The pound is in free fall, plunging to a shocking 1.3377 on Friday—the LOWEST it’s been since June 23! What’s behind this dramatic dip? Buckle up, because the explosive US jobs report has sent shockwaves through the currency world!
US Jobs Data: The Pound’s New Worst Enemy!
As the US economy flexes its muscles, the pound crumples under the pressure! Strong jobs data has sent demand for the dollar soaring, leaving the British currency reeling. Earlier, Prime Minister Keir Starmer tried to throw a lifeline by confirming Chancellor Rachel Reeves would stay on as economic mastermind—BUT it wasn’t enough! The market remains spooked about the potential for drastic changes in economic policy and MORE borrowing!
Brace for Impact: Rate Cuts on the Horizon?
The winds of change are howling as traders anticipate a possible Bank of England interest rate cut as soon as August! BoE Governor Andrew Bailey has warned that the full impact of trade tariffs is still unknown but hinted that interest rates are trending DOWNWARDS. Meanwhile, MPC member Alan Taylor is ringing alarm bells, urging for swifter rate cuts to avoid a disastrous economic crash!
Technical Breakdown: GBP/USD Under Siege!
Look at the charts—GBP/USD has slumped to 1.3562, then teetered towards 1.3675, but now analysts are eyeing a frightening drop to 1.3528! A breach below this threshold could send the currency spiraling down to 1.3485—yikes! The indicators are flashing red, with the MACD revealing a bear market nightmare as momentum stays firmly in bearish territory!
The Rollercoaster Continues!
On the H1 chart, the pound has made a slight correction to 1.3565 but is stuck in a treacherous consolidation range. A breakout above could spell a temporary reprieve to 1.3788, but watch out—a downward plunge could see it crash to 1.3485, with the Stochastic oscillator pointing sharply downwards, signaling intensified pressure!
Conclusion: Watch Your Wallets!
The GBP/USD saga continues, and right now, it looks grim! With impending support levels waiting at 1.3528-1.3485 and resistance looming at 1.3675-1.3788, market players are on high alert. The unforgiving strength of the US dollar and ongoing policy shifts from the Bank of England could spell disaster for the pound in the days to come!
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