The exchange rate between the British pound and the US dollar is known as cable because it was the first currency pair traded through a transatlantic telephone line. Like all other currencies, the pound has weakened in a straight line over the past six months and is currently close to very long-term chart support (between US$1.45 and US$1.50). We are watching for signs of the currency stabilising at this level this month. The biggest takeaway from this chart is how swings have continued to shrink since floating in the early 1970s. As has been the case since 2010, we foresee more broadly sideway moves between US$1.45 and US$1.70, like what happened from 1993 to 2000.
