Chart of the day: Beleaguered Britain battles on
As if Brexit is not enough to be getting on with, now we have got an espionage scandal worthy of a James Bond novel, and an outspoken new director of the US National Economic Council, the television pundit and presenter Larry Kudlow. Yet, despite these not inconsiderable headwinds, the pound keeps marching steadily onwards and upwards against the US dollar. A good one to remember: economics and politics do not necessarily determine exchange rates; supply and demand do, to which one might add value perceptions. The neat trend channel is intact and moving averages are supportive; the Ichimoku cloud system is bullish. We expect a retest of US$1.4275, which is the secular mean regression, where a break above here targets US$1.47.
Nicole Elliott is a technical analyst