Despite the recent correction in the value of the British Pound, Her Majesty’s currency is within a perfectly defined channel between $1.14 and $1.42. Yes, it is a somewhat substantial margin for a currency pair, however the history of this pair is made up of these channels, otherwise, in September 1992, a sharp drop precipitated GBP/USD from $2.01 to $1.41, with most of the correction in the first two months. After that there was a long consolidation, which lasted curiously until September but 2003, within a channel that fluctuated between $1,368 and $1,716, ending that period with an upward pull until the $2.11 of November 2007.
Again, in September, but in 2008, the Libra again suffered a severe shock that made it slide up to $1.35, again the correction occurred mainly in two to three months, reverting the pair to the levels of June 2011. consolidating in another space that had a maximum of $1,719, notice the particularities of the maximums and minimums of this channel are very similar to the previous channel. In June 2016 with Brexit, there was a downward drop in the value of the British Pound, which pushed it into a new trading zone, where it currently stands, with lows at $1.14.
Photo by Edward Howell.
It remains to be seen whether it will remain within the current channel or with the development of the Brexit theme, there will be some disruptive movement that will form a new trading space, and expect at least a high volatility index in the coming months.
