Technically there is going to be a great buy at 1.4360 and there shall be a rebound.
Without a change in the 20year paradigm it seems 1.35 should retain overall.
- what are the fundamentals that would justify GBPUSD Falling to parity?
- If none, what are the fundamentals that would justify GBPUSD going back to 1.75?
The rate hike is very much expected but if something happens in between that prevents it, it could drag USD lower for the wrong reasons this time.. And this something could be very bad for equities at the same time.