the pound has been weakening since last year, whilst the dollar has been strengthing.
Fundamental analysis the recent US non-farm payroll statistics for July 2022 recently came out as WAY more positive than expected. Us unemployment rate has also declined whilst the fed is increasing hawkishness by raising interest rates t record levels. ( so have GBP but not to the same degree).
Given the current financial conditions during this recession ( higher energy prices, inflation, plummeting ccurrencies etc) 'smart' money looks for a 'safe' place to hold their capital. because 1. USD is the federal reserve 2. US fed hawkishness 3. US RECENT economic improvement (since covid) - improved NFP, Unemployment rates, GDP, consumer spending 4. USD on the daily chart is currently in a bull market.
yes bull markets reverse, but it is also very dangerous to trade against such a strong trend. instead Managing risk and trailing stop loss would be more effective. Also i am trying a new thing, I can trade my bias ie USD LONG and GBPSHORT but my trading fails when i attempt to profit of the pullbacks. SO i will not longer trade that
Technical analysis I think its kind of self explantatry from the chart presented here. Mainly that gbpusd has tested resistence and price was rejects and is continually moving down.