The British pound is losing ground to its feet, plus we are seeing a stronger dollar. Such a mix causes even deeper declines on the GBPUSD pair. In the case of the pound, the weakening is the result of the plans the British government is supposed to be making for a "blackout" in January. The worst-case scenario indicates that in the event of the worst frosts, there could be a blackout of electricity and gas for up to 4 days, forcing rationing not only for industry, but also for households. Interestingly, more rate hikes are expected in the UK in the coming months, which, when juxtaposed with industrial stagnation, does not bode well. It appears that a recession in the UK may indeed be coming (the BoE's recent forecasts indicate 5 quarters of recession, starting in Q4).
In addition, Britons are facing a massive increase in their electricity bills. Bills are expected to rise from about £2,000 a year, which is paid now, to more than £4,200 a year next year.
The pound is losing heavily after the above information emerged. Source: xStation5
GBPUSD is below the 50-period average on H4. Previously, this average often provided both important resistance and support. Source: xStation5
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